USA 
United Kingdom
Dating app giant Bumble is cutting nearly a third of its global workforce, citing sustained pressure on its business and broader turbulence in the online dating industry.
In a note to staff, chief executive Whitney Wolfe Herd announced the decision to eliminate 240 jobs. “We need to take decisive action to restructure to build a company that's resilient, intentional, and ready for the next decade,” she wrote.
The company, which owns both Bumble and Badoo, plans to cut costs by $40 million annually as part of the restructuring. The savings will be redirected toward areas such as technology development.
Growth slows despite rising user base
At the end of last year, Bumble reported 4.1 million paying users across its apps, marking an 11% increase compared to the year before. Despite the rise in users, the company said revenue grew less than 2%, and it remained unprofitable.
Layoffs | Microsoft set to cut sales jobs as AI costs soar
Bumble, once valued at more than $13 billion at the time of its 2021 IPO, has seen its share price fall sharply. Its stock now trades below $7 per share, with much of its value wiped out over the past three years.
Shares jumped 20% following the announcement of job cuts, indicating positive investor reaction to the move.
Industry headwinds and shifting models
The dating app market has faced mounting challenges, including difficulties in converting users into paying subscribers. This has led to broader concerns among investors about the long-term prospects of the sector.
Bumble was originally known for a unique approach that allowed only women to initiate conversations with matched male users, while either party could send the first message in same-sex matches. That model was updated last year in an attempt to boost engagement and growth.
Founder Whitney Wolfe Herd, who stepped down as CEO in 2023, returned to the role in March to lead the company through its transition. She acknowledged that the dating sector is facing an “inflection point.”
Other companies in the space have faced similar issues. Match Group, which owns brands including Tinder, announced it would cut 13% of its workforce last month.
