Bumble Inc. lays off 240 employees to restructure business
- Bumble Inc. plans to lay off 240 employees, constituting 30% of its workforce, in response to the need for organizational restructuring.
- The layoffs aim to achieve annual savings of up to $40 million, which will be reinvested in product and technology development.
- This move is part of Bumble's strategy to enhance its core product offerings and improve user experience in a competitive dating app market.
Bumble Inc., the popular dating app, announced on Wednesday that it will reduce its workforce by 30%, which translates to approximately 240 jobs, in an effort to restructure its operations. This strategic move comes as the company seeks to optimize its execution of strategic priorities, according to a filing made with the Securities and Exchange Commission. The layoffs are expected to result in annual savings of up to $40 million, which the company will redirect towards product and technology development initiatives intended to enhance user experience and innovation. CEO Whitney Wolfe Herd communicated to employees that the decision was made in light of the company's need to adopt a more resilient, agile organizational structure better suited for future growth. Bumble aims to prioritize core product innovations and consider how technology can shape human connections more effectively. Furthermore, the company also plans to provide severance packages and transitional support to those affected by the layoffs, highlighting its commitment to assist employees during this transition. In conjunction with these staffing changes, Bumble disclosed its projected revenue for the second quarter, predicting figures between $244 million and $249 million, with an EBITDA forecast ranging from $88 million to $93 million. This comes after the first quarter saw a year-over-year revenue decline to $247.1 million. The layoffs are expected to trigger charges totaling $13 to $18 million, primarily reflective of severance and other related costs, predominantly occurring during the latter half of 2025. Amidst this restructuring, Bumble seeks to re-establish its focus on member-first approaches, addressing the challenges posed by competing dating platforms while enhancing the dating experience tailored specifically for its user base. The changes follow a period of increased scrutiny and competition within the dating app landscape as companies struggle to retain users against the backdrop of evolving market dynamics.