Bumble Cuts 30% of Workforce in Major Layoffs
▼ Summary
– Bumble is laying off 30% of its workforce (around 240 employees) to realign its operating structure and optimize strategic priorities.
– The company expects to save $40 million annually from the layoffs, with most savings reinvested in product and technology development.
– Bumble will incur $13 million to $18 million in non-recurring charges for severance and benefits, impacting Q3 and Q4 of 2025.
– Bumble’s shares rose 20% after the layoff announcement, and it increased its Q2 revenue forecast to $244 million–$249 million.
– Founder Whitney Wolfe Herd returned as CEO in March 2024, citing the need to revive Bumble after weak Q1 earnings and declining performance.
Bumble has announced significant workforce reductions, eliminating 30% of its staff, approximately 240 jobs, as part of a broader restructuring effort. The dating app revealed the move in a regulatory filing, stating the decision aligns with its strategy to streamline operations and focus on key priorities.
The company expects to save $40 million annually from these cuts, with plans to reinvest the majority into product innovation and technological advancements. However, the layoffs come with substantial one-time costs, estimated between $13 million and $18 million, primarily covering severance and benefits for affected employees. These expenses will be recorded in the latter half of 2025.
Investors responded positively to the news, with Bumble’s stock surging roughly 20% following the announcement. This marks the second major round of layoffs in recent months, earlier this year, the company trimmed its workforce by a similar percentage, impacting around 350 employees.
Alongside the restructuring, Bumble revised its second-quarter revenue forecast upward, now projecting between $244 million and $249 million, up from its previous estimate of $235 million to $243 million. The adjustment signals cautious optimism despite broader industry challenges.
The workforce reduction coincides with Whitney Wolfe Herd’s return as CEO earlier this year. After stepping down in 2023, Herd resumed leadership in March, acknowledging the company’s struggles in a recent interview. “Bumble needs me back,” she stated, emphasizing her personal connection to the brand amid declining performance.
Bumble isn’t alone in facing headwinds. Match Group, parent company of competing platforms like Tinder and Hinge, also implemented layoffs in May, cutting 13% of its staff to reduce expenses and simplify operations. Both companies are grappling with shifting user preferences, particularly among younger demographics, as the dating app market becomes increasingly competitive.
The latest restructuring reflects Bumble’s efforts to regain momentum while navigating a challenging landscape for digital dating platforms. With renewed leadership and strategic reinvestment, the company aims to stabilize its position in an evolving industry.
(Source: TechCrunch)
