The move, which will affect 240 roles, or 30 per cent of Bumble’s staff, is part of a broader effort to revamp the platform as the industry grapples with declining user engagement. Rival Match also announced a 13 per cent workforce reduction in May.
Shares of Bumble jumped 25 per cent on the news, but they are still down by about a fifth for the year.
The company’s market value has shrunk to a little over US$500 million (S$638.4 million) from a peak of around US$15 billion when it went public in 2021, LSEG data shows.
Online dating firms have struggled in recent years to keep their audiences, especially Gen Z users, swiping on their apps, leading to management overhauls and pressure from activist investors.
Match in February appointed Mr Spencer Rascoff as its new chief executive, signalling a fresh direction for the company.
For Bumble, the cuts come three months after founder Whitney Wolfe Herd reassumed the role of CEO, promising the company’s performance by focusing on match-making quality.
In an early sign the efforts were working, Bumble on June 25 raised its second-quarter revenue forecast to a range of US$244 million to US$249 million, up from the prior view of US$235 million to US$243 million.
The company also met Wall Street expectations for first-quarter revenue in May even as it posted a 7 per cent decline.
Bumble expects to save about US$40 million of annual costs from the layoffs, which it plans to reinvest in initiatives such as product and technology development. Reuters