Dating app Bumble is laying off 30% of its workforce

Bumble, the dating app facing significant challenges, has announced a dramatic reduction of 30% in its workforce, translating to around 240 jobs. This decision comes as the company grapples with a staggering 90% decline in its stock value since its public offering in 2021. According to a recent regulatory filing, the layoffs are expected to save Bumble approximately $40 million annually. This workforce reduction is part of Bumble's strategy to realign its operations and enhance its focus on strategic priorities. The company plans to reinvest a substantial portion of the savings into the development of new products and tools. The move highlights a growing concern that younger users are becoming disenchanted with online dating, prompting Bumble to explore innovative solutions, including a stronger reliance on artificial intelligence to improve match-making. A spokesperson for Bumble expressed regret over the layoffs, stating, "These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted." The company emphasizes that its primary goal is to strengthen its core business, effectively serve its members, and position itself for future growth. The turmoil has led to Bumble founder Whitney Wolfe Herd returning to the company after a two-year absence, as she acknowledged the difficulties the company has faced. In a candid interview, Herd remarked on the challenges of watching Bumble's stock plummet from its peak. Recent financial reports reveal a nearly 8% drop in revenue during Bumble's last quarter, with a slight decline in premium subscribers. The company is set to release its next earnings report in August, which will be closely watched by investors. In light of the layoffs, Bumble’s stock saw a notable increase of around 17%. However, the struggles are not unique to Bumble; competitors like Match Group's Hinge and Tinder are also facing difficulties. Match Group recently cut its workforce by 13%, impacting about 300 employees, as it works to introduce new features designed to retain user engagement. In contrast, Grindr, the LGBTQ+-focused dating app, is thriving, with its shares rising over 115% in the past year. The platform is evolving from its traditional hook-up model to attract a broader user base and more advertisers through new, innovative features.