Bumble to lay off 30% of global workforce as online dating industry struggles
Online dating firms have struggled in recent years to keep their audiences, especially Gen Z users. PHOTO: REUTERS
Bumble to lay off 30% of global workforce as online dating industry struggles
Bengaluru - Bumble said on June 25 it would lay off nearly a third of its workforce, the latest cuts in the dating app industry as firms struggle to develop features that will keep users spending amid economic uncertainty.
The move, which will affect 240 roles, or 30 per cent of Bumble's staff, is part of a broader effort to revamp the platform as the industry grapples with declining user engagement. Rival Match also announced a 13 per cent workforce reduction in May.
Shares of Bumble jumped 25 per cent on the news, but they are still down by about a fifth for the year.
The company's market value has shrunk to a little over US$500 million (S$639 million) from a peak of around US$15 billion when it went public in 2021, LSEG data shows.
Online dating firms have struggled in recent years to keep their audiences, especially Gen Z users, swiping on their apps, leading to management overhauls and pressure from activist investors.
Match in February appointed Spencer Rascoff as its new chief executive officer, signalling a fresh direction for the company.
For Bumble, the cuts come three months after founder Whitney Wolfe Herd reassumed the role of CEO, promising the company's performance by focusing on match-making quality.
In an early sign the efforts were working, Bumble on June 25 raised its second-quarter revenue forecast to a range of US$244 million to US$249 million, up from the prior view of US$235 million to US$243 million.
The company also met Wall Street expectations for first-quarter revenue in May even as it posted a 7 per cent decline.
Bumble expects to save about US$40 million of annual costs from the layoffs, which it plans to reinvest in initiatives such as product and technology development. REUTERS
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