Bumble jumps 15% as dating company plans to axe 30% of workforce

Bumble's stock experienced a significant surge of over 15% on Wednesday, following the dating app's announcement regarding a substantial reduction in its workforce. The company disclosed in a recent securities filing that it plans to eliminate approximately 30% of its staff, translating to around 240 positions. This workforce reduction is expected to incur charges between $13 million and $18 million during the third and fourth quarters of this fiscal year. However, Bumble's management anticipates that these layoffs will ultimately yield annual savings of around $40 million. The decision is part of a broader strategy to restructure the company's operational framework, aimed at enhancing the execution of its strategic objectives. Bumble has expressed its intention to reinvest these savings into the development of new products and technological advancements. Since its public market debut in 2021, the dating app's shares have faced a downturn, with its market capitalization plummeting from $7.7 billion to about $538 million as of the end of Tuesday. In a notable leadership shift, founder Whitney Wolfe Herd, who initially stepped down as CEO at the start of 2024, has returned to lead the company once again. Alongside the layoffs, Bumble also revised its revenue forecast for the ongoing quarter, now estimating revenues between $244 million and $249 million, with adjusted EBITDA ranging from $88 million to $93 million. This revision marks an increase from the earlier forecast of $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA reported in last month’s first-quarter results.