On Wednesday, Bumble, a dating application, disclosed that it will eliminate 30% of its workforce, affecting approximately 240 positions.
The company stated in a securities filing that the reductions are a component of its strategy to realign its “operating structure to optimize execution on its strategic priorities.”
Bumble anticipates $40 million in annual savings due to the personnel reduction and intends to allocate the majority of this sum to advancing technology and products.
The company has announced that it will incur non-recurring charges of approximately $13 million to $18 million in the third and fourth quarters of 2025. These charges are primarily associated with severance, benefits, and related expenses for affected employees.
Following the announcement of the employment cuts, Bumble’s shares have increased by approximately 20%.
The most recent round of redundancies was in January 2024, during which the company reduced its workforce by 30%, affecting approximately 350 employees.
In addition to disclosing the workforce reduction, Bumble has upgraded its second-quarter revenue forecast to a range of $244 million to $249 million, an increase from the previous estimate of $235 million to $243 million.
The reductions coincide with Bumble’s announcement at the beginning of the year that founder Whitney Wolfe Herd would resume her role as CEO in March, following her departure from the position in 2023.
Herd stated in an interview with The New York Times that “Bumble needs me back,” while Bumble reported weak first-quarter earnings that declined 7.7% year-over-year last month. To a certain extent, it is an extension of my being, and it has been tough to observe it descending from its zenith.
Match, the owner of competing applications such as Tinder and Hinge, has also encountered difficulty in attracting and retaining users, particularly those who are young.
In May, Match disclosed that it would eliminate 13% of its workforce to optimize its organizational framework and minimize expenditures.
