Bumble said on Wednesday it would lay off nearly a third of its workforce, the latest cuts in the dating app industry as firms struggle to develop features that will keep users spending amid economic uncertainty.
The move, which will affect 240 roles, or 30% of Bumble's staff, is part of a broader effort to revamp the platform as the industry grapples with declining user engagement. Rival Match <MTCH.O> also announced a 13% workforce reduction last month.
Shares of Bumble rose 22% in early trading, but they are still down by about a fifth for the year.
The company's market value has shrunk to a little over $500 million from a peak of around $15 billion when it went public in 2021, LSEG data shows.
Online dating firms have struggled in recent years to keep their audiences, especially Gen Z users, swiping on their apps, leading to management overhauls and pressure from activist investors.
Match in February appointed Spencer Rascoff as its new CEO, signaling a fresh direction for the company.
For Bumble, the cuts come three months after founder Whitney Wolfe Herd reassumed the role of CEO, promising the company's performance by focusing on match-making quality.
In an early sign the efforts were working, Bumble on Wednesday raised its second-quarter revenue forecast to a range of $244 million to $249 million, up from the prior view of $235 million to $243 million.
The company also met Wall Street expectations for first-quarter revenue in May even as it posted a 7% decline.
Bumble said it will incur about $13 million to $18 million in layoff-related charges, primarily in the third and fourth quarters of 2025.
It expects to save about $40 million of annual costs, which it plans to reinvest in initiatives such as product and technology development.
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