Bumble to Cut 30% of Workforce Amid Struggles to Revive Growth
Dating app company Bumble Inc. has announced plans to cut approximately 30% of its global workforce – roughly 240 jobs – as it grapples with slowing growth and declining investor confidence.
In a message to employees, founder and CEO Whitney Wolfe Herd described the decision as part of a broader restructuring effort aimed at preparing the company for a more resilient and focused future. “We need to take decisive action to restructure to build a company that’s resilient, intentional, and ready for the next decade,” she said.
The layoffs come as the online dating industry faces what Wolfe Herd called an “inflection point,” with users showing signs of subscription fatigue and rival platforms competing aggressively for attention.
Bumble, which also owns Badoo, built its reputation as a women-led dating app that allowed only female users to initiate contact in heterosexual matches – a feature that distinguished it early on. However, the company adjusted this approach last year in a bid to boost user engagement and growth.
Despite reporting 4.1 million paying users at the end of 2023 – an 11% increase year-on-year – revenue growth has been sluggish, rising less than 2%. The company also posted a net loss for the period.
Bumble made a splash on Wall Street when it went public in 2021, briefly achieving a market valuation of over $13 billion and turning Wolfe Herd into the youngest self-made female billionaire at age 35. But investor enthusiasm has since cooled dramatically. Shares have plunged more than 90% and are currently trading below $7.
The company estimates the workforce reduction will save approximately $40 million annually, which it plans to reinvest in technology, product improvements, and long-term innovation.
The broader dating app market is also under pressure. Match Group, which owns Tinder and other popular platforms, recently announced it would eliminate about 13% of its workforce due to similar challenges.
Following the announcement of the job cuts, Bumble’s stock surged by more than 20%, signaling cautious investor optimism about the company’s cost-cutting strategy and renewed leadership under Wolfe Herd, who returned as CEO in March after stepping down in 2023.
The company said it remains committed to refining its user experience and repositioning for growth in a rapidly evolving dating app landscape.
