PHILADELPHIA — Online dating platform Bumble has announced plans to lay off approximately 240 employees, representing about 30% of its global workforce. The decision comes as part of a strategic realignment aimed at optimizing the company’s operational structure.
Immediate Impact
In a recent securities filing, Bumble disclosed that its board approved the workforce reductions earlier this week. The Austin, Texas-based company anticipates annual cost savings of $40 million from these layoffs, which it plans to reinvest into product and technology development.
“These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted,” Bumble stated in a message to The Associated Press.
Key Details Emerge
Bumble’s stock surged over 23% following the announcement, trading at just over $6.40 as of Wednesday afternoon. Despite the positive market response, the company did not specify the timing or the specific roles affected by the layoffs. However, the filing indicates the process will extend into the later part of the year, with expected severance costs ranging from $13 million to $18 million primarily in the third and fourth fiscal quarters.
Industry Response
The announcement comes as Bumble, like the broader online dating industry, faces an inflection point. In a note to employees, CEO and founder Whitney Wolfe Herd emphasized the necessity of “hard decisions” as part of the company’s ongoing rebuilding efforts.
“Bumble, like the online dating industry itself, is at an inflection point,” Wolfe Herd stated.
Background Context
Wolfe Herd founded Bumble in 2014, following her co-founding of Tinder in 2012. She stepped back into the CEO role in March after serving from 2020 to January 2024. Since going public in 2021, Bumble has struggled in the market, with shares down more than 35% over the past year and nearly 92% since its initial public offering.
By the Numbers
- Total revenue for the first quarter: approximately $247 million, down nearly 8% from the previous year.
- Expected second-quarter revenue for fiscal year 2025: between $244 million and $249 million.
- Previous second-quarter revenue for 2024: $269 million.
What Comes Next
Looking ahead, Bumble is focusing on strengthening its core business and positioning itself for future growth. The company aims to leverage the cost savings from the layoffs to enhance its product offerings and technological capabilities.
Meanwhile, industry experts warn that the timing of these layoffs is particularly significant, given the competitive landscape of the online dating market. As Bumble navigates these changes, stakeholders will be watching closely to see how the company adapts and evolves in response to these challenges.
