3 days ago
Bumble reduces workforce in company-wide restructuring effort. Does it have a future?
The dating app company Bumble, which launched in 2014, had separated itself from competitors by creating a platform where women initiate the conversation by sending the first message. This strays from competitors who allow either person to message first.
Additionally, the app has Bumble BFF mode, where users can meet new friends, and Bumble Biz mode, where professionals can connect and share knowledge in an easygoing and more comfortable setting, according to Bumble.
But in a securities filing report this week, Bumble announced it will be laying off 30% of its global workforce.
Bumble was a privately owned entity until 2021, when it went public. Since then, it has struggled in the market, with its stock down more than 35% over the last year as of Wednesday, and nearly 92% since 2021, per The Associated Press.
The report released by Bumble on Wednesday disclosed that the board had approved the proposed cuts as the company 'realigns its operating structure to optimize execution on its strategic priorities.'
The report did not immediately disclose when the layoffs would be implemented, but the securities filing implied that the process would extend to the end of the year, with severance for impacted employees numbering anywhere between $13 million to $18 million.
In a note sent to employees on Wednesday, Bumble CEO and founder Whitney Wolfe Herd wrote, 'This is a hard note to write — and I know it's a hard one to read. But I've always promised to lead with honesty, clarity, and care, even when it's difficult.'
Wolfe Herd continued, 'Bumble, like the online dating industry itself, is at an inflection point. In recent months, we've been rebuilding — returning to what makes us trusted, unique, and deeply human. But intentional rebuilding requires hard decisions. Today, we are marking one of the most difficult: we are reducing the size of our team. This decision is not a reflection of any individual but rather where we are going as a company and what we are building for.'
Wolfe Herd had just stepped back into her role as CEO in March, after leaving the company in January 2024, per AP.
With these layoffs, the dating app developer will save an estimated $40 million annually, according to CNBC.
CNN noted that Bumble's latest employee changes are 'the latest warning sign that younger users are growing frustrated and abandoning online dating, forcing companies like Bumble to search for new ways to innovate, including putting a stronger emphasis on using artificial intelligence to find matches.'
Rival developer Match Group, responsible for dating apps Hinge and Tinder, is also struggling in the market. As of May, the company reduced its workforce by 13%, which affected 300 employees, per Fortune.
Tinder is releasing new features to keep users engaged, such as the app's new 'Double Date' feature, which allows friends to have joint profiles, enabling users to match in pairs and plan double dates for their first in-person meeting, per Business Insider.
