Bumble, the popular dating app, is laying off 240 employees, which is about 30% of its staff. The company says it’s doing this because fewer people are using the app these days, and it wants to make some big changes to improve.
Bumble isn’t the only one struggling. Other dating apps, like Tinder’s parent company Match, also announced job cuts recently as more people, especially younger users, are spending less time on dating apps.
Bumble’s founder Whitney Wolfe Herd, who recently came back as CEO, says the company is now focusing on helping people find better matches instead of just endless swiping. The goal is to make the app more meaningful for users.
Even though the layoffs are tough news, Bumble’s stock actually went up 22% after the announcement. The company also shared some positive updates — it expects to make more money than it earlier thought for the second quarter.
Bumble says it will save around $40 million a year from these job cuts. The plan is to use that money to improve the app and add better features. However, the company will also spend between $13 million and $18 million to manage the layoffs.
Bumble was once worth $15 billion when it went public in 2021, but now its value has dropped to just over $500 million.
The company hopes these changes will help bring back users and make online dating better.
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