Online dating platform Bumble has announced it will lay off approximately 240 employees, which constitutes about 30% of its global workforce. This decision was revealed in a securities filing, where Bumble stated that the move aims to “realign its operating structure to optimize execution on its strategic priorities.” The company, headquartered in Austin, Texas, expects to save around $40 million annually from these layoffs. These savings will be redirected toward enhancing product and technology development.
Bumble Prioritizes Long-Term Growth Amid Layoffs, Market Reacts with Stock Surge
Bumble expressed regret over the decision, emphasizing that it was made with careful consideration. In a statement to the Associated Press, the company thanked the affected employees for their contributions and reiterated its commitment to strengthening its core business and preparing for long-term growth. The job cuts are part of a broader strategic overhaul as the company seeks to reposition itself in a competitive and rapidly evolving online dating market.
Bumble Cuts 30 Percent of Workforce as CEO Returns to Lead Strategic OverhaulThe market responded positively to the layoff news, with Bumble’s stock price jumping more than 23%, reaching just over $6.40 by Wednesday afternoon. However, the company did not provide specific details regarding the timeline or departments affected by the layoffs. The securities filing indicated that the reduction process would extend through the year, with expected severance and related costs totaling between $13 million and $18 million, mostly affecting the third and fourth fiscal quarters.
CEO Returns Amid Industry Shift and Bumble’s Struggle to Regain Financial Stability
In an internal message, Bumble founder and CEO Whitney Wolfe Herd acknowledged that the company—and the online dating industry at large—is at a significant turning point. She highlighted that Bumble has been undergoing a period of “rebuilding,” necessitating difficult decisions such as the workforce reduction. Wolfe Herd, who founded Bumble in 2014 after co-founding Tinder in 2012, resumed her role as CEO in March 2024 after previously holding the position from 2020 through January 2024.
Despite the recent surge in its stock, Bumble has faced considerable financial challenges since its initial public offering in 2021. The stock has declined by more than 35% over the past year and is down nearly 92% from its debut price.
In the first quarter of its 2025 fiscal year, Bumble reported revenues of $247 million, an 8% year-over-year decrease. While its second-quarter projections now range between $244 million and $249 million, they still fall short of the $269 million reported in the second quarter of 2024, indicating that the company is still striving to regain its financial footing.
