Layoff news: Bumble to cut 30% of global workforce amid strategic overhaul
Dating app giant Bumble has announced plans to lay off nearly a third of its global workforce, reported Reuters. The decision, revealed on Wednesday, will impact around 240 roles, or approximately 30 per cent of the company's staff.
It is noteworthy that the restructuring comes as the broader online dating industry grapples with changing user behaviour and economic pressures, particularly among Gen Z audiences. Rivals such as Match Group have also responded with cost-cutting measures, including a 13 per cent staff reduction announced last month. You may be interested in
Despite the job cuts, Bumble lifted its second-quarter revenue guidance, projecting earnings between $244 million and $249 million, up from an earlier forecast of $235 million to $243 million. The company's first-quarter revenue had met market expectations, although it marked a year-on-year decline of seven per cent.
Shares in Bumble surged by 19 per cent following the announcement. However, the company's market capitalisation remains significantly down from its peak of roughly $15 billion at the time of its 2021 stock market debut. As of this week, its valuation hovers just above $500 million, according to data from LSEG.
Analysts interpret the move as part of a broader shift under returning CEO Whitney Wolfe Herd, who resumed the top role earlier this year with a renewed focus on the quality of connections facilitated by the app. Chandler Willison, an analyst at M Science, said the layoffs reflected Bumble's effort to move away from prioritising short-term revenue and growth in favour of building a more agile and user-centric platform.
'The changes are intended to streamline operations and return Bumble to a startup-like mindset that can innovate more effectively,' said Willison.
The company expects to incur restructuring charges of between $13 million and $18 million, primarily across the third and fourth quarters of 2025. However, it anticipates annual savings of around $40 million, which it plans to reinvest in product innovation and technological advancement.
(With inputs from Reuters)
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