Bumble Shares Soar After 30% Job Cuts and Raised Outlook
June 25 - Bumble (NASDAQ:BMBL) stock climbed 18% on Wednesday after the company said it will cut about 30% of its global workforce, or roughly 240 jobs, to streamline operations.
The decision was approved by the board on June 23 as part of a broader restructuring effort aimed at sharpening focus on long-term priorities.
Warning! GuruFocus has detected 4 Warning Signs with BMBL.
The dating app operator expects one-time costs of $13 million to $18 million, mostly tied to severance, benefits, and related expenses. These charges will primarily impact the third and fourth quarters of 2025. Some regions may see extended timelines due to local labor rules.
Bumble anticipates annual cost savings of up to $40 million from the layoffs. It plans to reinvest most of those funds into product development and technology upgrades.
Alongside the restructuring, the company raised its second-quarter 2025 guidance. Revenue is now expected to range from $244 million to $249 million, while adjusted EBITDA is forecast between $88 million and $93 million. This compares with prior estimates of $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA.
CEO Whitney Wolfe Herd called the decision difficult but necessary, saying Bumble is aiming to become leaner and more innovation-driven.
This article first appeared on GuruFocus.
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