Popular dating app Bumble lays off hundreds of employees, here's why

Bumble

, the popular

dating app

, is making significant

workforce adjustments

. The company recently revealed plans to

lay off

approximately 350

employees

, constituting about 37% of its workforce. This move comes in response to a disappointing first-quarter revenue and a challenging environment characterised by a slowdown in user spending. “Today, the Company announced that it intends to reduce its global workforce by approximately 350 roles to better align its operating model with future strategic priorities and to drive stronger operating leverage,” the company said in a press release announcing its quarterly results.

Bumble said that it expects to incur approximately $20 million to $25 million of non-recurring charges, consisting primarily of employee severance, benefits, and related charges for impacted employees, the majority of which will be recognised in the first two quarters of 2024.
“We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships,” Bumble CEO Lidiane Jones said during a call on today’s earnings. “We have a lot of users today that love the paradigm of the online dating — swiping and discovery and searching — but there’s also a set of users that want more flexibility to be able to experience and discover people in a more organic and natural way,” she added.
The company revealed the its total revenue increased 13.2% to $273.6 million, compared to $241.6 million in the previous quarter.

2024 has started on a rather ominous note for tech industry as several companies have laid off thousands of employees. Bumble joins that wave of companies announcing cuts due to a variety of factors. Major players like Google and Amazon persist in reducing headcount, contributing to a trend where over 170 tech firms have axed nearly 44,000 jobs, according to

Layoffs

.fyi, an industry tracker.