Bumble layoffs: 30% global workforce axed; CEO pushes reset to revive growth
Bumble Inc. has announced plans to lay off nearly 30 per cent of its global workforce, affecting 240 employees, in a move aimed at cutting costs and repositioning the online dating firm for long-term growth. The company said it would reinvest savings of around $40 million into product innovation and technology development. The layoffs, confirmed in a regulatory filing on Wednesday, mark the latest shakeup in a struggling dating app sector grappling with economic headwinds and stagnating user growth. According to news agency Reuters, Bumble’s decision aligns with its broader strategy shift under CEO and founder Whitney Wolfe Herd, who returned to lead the firm in March amid mounting investor pressure. “This is an inflection point,” Wolfe Herd told employees in an internal email, as reported by CBS News. “We need to take decisive action to restructure to build a company that’s resilient, intentional and ready for the next decade.” Bumble, which went public in 2021 with a $15 billion valuation, now trades at less than $7 per share, slashing its market capitalisation to just over $500 million. Shares jumped more than 23 per cent following the layoff announcement and even rose 21 per cent in midday trading, according to news agency Associated Press. The company also raised its second-quarter revenue forecast to $244 million–$249 million, up from the earlier guidance of $235 million–$243 million. While Bumble met Wall Street’s first-quarter expectations in May, it still reported a nearly 8 per cent revenue drop from a year ago, reported AP. During the same earnings call, Wolfe Herd admitted the platform had lost traction with users and promised improvements in match quality and user experience. “We are accelerating our efforts to improve our member base and show members a more thoughtful selection of high-quality, relevant profiles,” she had said, as cited by CBS News. Founded on the premise of women making the first move, Bumble has since adjusted its signature rule to drive growth. The firm also owns Badoo and had around 4.1 million paying users at the end of 2024, up 11 per cent year-on-year. However, overall revenue growth remained sluggish at under 2 per cent, and the company has continued to report losses, BBC reported. The strategic overhaul comes as the online dating space sees declining investor confidence and increasing competition. Rival Match Group, which owns Tinder, recently cut 13 per cent of its workforce. According to Reuters, Bumble’s new direction under Wolfe Herd emphasises user experience over short-term revenue or growth metrics. Chandler Willison, analyst at M Science, was quoted by Reuters as saying that the restructuring reflects Bumble’s push to become more agile and return to a “startup-like” model. The company expects to incur $13 million–$18 million in one-time severance and related costs across Q3 and Q4 of 2025. A Bumble spokesperson said the layoffs align with the firm’s strategic goals. “Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth,” the spokesperson said, as cited by CBS News. With this reset, Bumble hopes to navigate industry turbulence and reclaim its footing in a space increasingly defined by evolving user expectations and economic caution.
