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Bumble shares soar after dating app announces major job cuts
Bumble shares soar after dating app announces major job cuts

Yahoo

time4 days ago

  • Business
  • Yahoo

Bumble shares soar after dating app announces major job cuts

Bumble is cutting a third of its workforce, the latest sign that all is not well in the business of online dating. Williams leads the charge in bridging today's energy needs with tomorrow's technologies I've become an AI vibe coding convert Senate Republicans are about to pass a bill that will destroy the climate and spike your energy bills The company informed its staff of the layoffs in a letter from founder and CEO Whitney Wolfe Herd on Wednesday, describing the company and the dating industry as reaching an 'inflection point.' 'In recent months, we've been rebuilding—returning to what makes us trusted, unique, and deeply human,' Wolfe Herd wrote. 'But intentional rebuilding requires hard decisions.' Bumble's workforce reduction will affect 240 positions, reducing the company's head count by 30%. In a Securities and Exchange Commission filing, Bumble said that it expects the layoffs to save $40 million annually—cash that it plans to reinvest into product and technology development. The company expects to pay between $13 and $18 million in costs related to the layoffs in the third and fourth quarters of the year. On Wednesday, Bumble's shares rose more than 20% on news of the layoffs and were trading around $6.26 at the time of writing. 'The reality is, we need to take decisive action to restructure to build a company that's resilient, intentional, and ready for the next decade,' Wolfe Herd wrote. 'We have reset our strategy and are going back to a startup mentality—rooted in an ownership mindset and team structures designed for faster, more meaningful execution.' Wolfe Herd left her role as Bumble's CEO at the beginning of 2024, with former Slack CEO Lidiane Jones stepping in to lead the company. In March of this year, Jones resigned for personal reasons, and Wolfe Herd again took the helm of the company she founded in 2014 after cofounding Tinder—now Bumble's main rival. Bumble, which has historically put women in the driver's seat of the online dating experience, has struggled to find its footing in a post-pandemic online dating world where many former users feel burned out by the churn of dating apps. The company isn't alone in that struggle—dating giant Match Group announced its own major layoffs last month—but Bumble has resorted to altering its own DNA to adapt to a changing landscape for users looking for love. Last year, Bumble announced that men on its app would be allowed to message women first, a huge change for a dating system that's prided itself on letting women make the initial move. The feature, called Opening Moves, let women set prompts on their profiles that men could choose to respond to. The gamble doesn't appear to have made a lasting impact on Bumble's bottom line, and the company's stock continued to slide into 2025. Bumble first went public in 2021 with its buzzy stock debuting at more than $70 a share—a distant memory from the stock's recent single digit values. Bumble's woes are shared by Match Group, its biggest rival, which owns Tinder, OkCupid, Hinge, and a deep roster of other niche and general interest dating apps. The two competitors, which together account for nearly all of the online dating market share, lost more than $40 billion combined between 2021 and 2024. Online dating is a strange business in some ways. While hookup apps like Grindr might beg to differ, a successful dating app interaction could result in both users leaving the app for a long stretch, or even forever. That intrinsic paradox is a tricky business to begin with, but the more dire existential threat might be that neither Match Group nor Bumble can seem to crack the code of Gen Z's dating habits. So far, that emerging cohort of eligible singles isn't very interested in paying for a subscription on a dating app and, worse yet, might be looking for love IRL, of all places. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Bumble to lay off 30% of its workforce
Bumble to lay off 30% of its workforce

TechCrunch

time5 days ago

  • Business
  • TechCrunch

Bumble to lay off 30% of its workforce

Dating app Bumble announced on Wednesday that it's laying off 30% of its workforce, impacting around 240 positions. The company said in a securities filing that the cuts are part of its plans to realign its 'operating structure to optimize execution on its strategic priorities.' Bumble anticipates saving $40 million per year as a result of the workforce reduction and plans to reinvest most of this money into product and technology development. The company said it will incur approximately $13 million to $18 million of non-recurring charges, mainly related to severance, benefits, and associated costs for affected employees in the third and fourth quarters of 2025. Bumble's shares are up around 20% following the news of the job cuts. The company's last round of layoffs was back in January 2024, when it cut 30% its workforce, impacting around 350 employees. In addition to announcing the workforce reduction, Bumble shared that it's increasing its second-quarter revenue forecast to a range of $244 million to $249 million, up from the previously forecasted $235 million to $243 million range. The cuts come as Bumble announced at the start of the year that founder Whitney Wolfe Herd was returning as CEO in March, after stepping down from the position in 2023. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW As Bumble last month reported weak first-quarter earnings that fell 7.7% year-over-year, Herd said in an interview with The New York Times that 'Bumble needs me back. It's an extension of me to some degree, and watching it fall from its peak has been very hard.' Match, which owns rival apps like Tinder and Hinge, has also been struggling to attract and retain users, particularly young ones. Match announced in May that it was laying off 13% of its staff to reduce costs and streamline its organizational structure.

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