Bumble, currently ranked as the second-largest online dating platform, has announced plans to reduce its global workforce by 30%, according to a recent filing with securities regulators. Competitors like Match Group have also taken steps to reduce expenses, recently revealing a workforce downsizing of 13% as part of their cost-saving strategy announced last month.
Bumble expects to cut costs by approximately $40 million, a sum the Austin, Texas-headquartered firm plans to primarily channel into enhancing its “product and technology development.” The company is actively looking into integrating artificial intelligence into its platform.
In a message to employees on Wednesday, CEO Whitney Wolfe Herd—who also played a key role in launching Tinder—shared the news, noting that the online dating industry is undergoing a pivotal transformation.
In an email to Bumble employees, she said: “The reality is, we need to take decisive action to restructure to build a company that’s resilient, intentional, and ready for the next decade.”
In spite of the layoffs, Bumble raised its revenue outlook for the second quarter, now expecting to generate between $244 million and $249 million—an increase from its previous estimate of $235 million to $243 million. While the company’s first-quarter revenue aligned with analyst predictions, it still reflected a 7% decrease compared to the same period last year.
In recent years, online dating platforms have faced challenges in retaining users, particularly among Gen Z, resulting in executive shakeups and mounting pressure from activist shareholders.
