Bumble to lay off 30% global workforce, likely to save $40 million in annual cost savings
Bumble Inc. said it's cutting almost one-third of its staff, months after founder Whitney Wolfe Herd returned as chief executive officer to overhaul the struggling dating app. Shares of Bumble jumped 23% after markets opened in New York.(Reuters)
The Austin-based company will eliminate around 240 roles globally, or about 30% of its workforce, it said in an exchange filing Wednesday. It expects to achieve as much as $40 million in annual cost savings from the reductions, and plans to 'reinvest the substantial majority' of those savings in 'strategic initiatives including product and technology development.'
Shares of Bumble jumped 23% after markets opened in New York.
Bumble and rival Match Group Inc., which owns Tinder and Hinge, have been struggling to adapt to a generational shift in how younger users date. Both companies have overhauled their executive teams this year in the hopes of returning to revenue growth. Match cut 13% of staff recently to streamline the company's organizational structure and reduce costs.
The size of Wednesday's layoffs matched the last round Bumble conducted in 2024, weeks after the prior CEO, Lidiane Jones, assumed the role and shook up the C-suite ranks.
Since returning to the company in March, Wolfe Herd has vowed to double down on removing bad actors from the platform to help users find higher-quality matches. She also said the brand will unveil a 'big update' to its Bumble BFF app for friendships, among other product releases planned this summer.
The company said in the filing it expects to incur about $13 million to $18 million of charges primarily related to severance packages, mainly in the third and fourth quarter.
On Wednesday, the company also boosted its second-quarter revenue guidance range to between $244 million and $249 million, up from a prior forecast of $235 million to $243 million. It also raised its outlook for adjusted earnings before interest taxes, depreciation and amortization to a range of $88 million to $93 million. The company has previously forecast $79 million to $84 million.
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