Bumble's Big Shake-Up: Jobs Cut, Boss Returns, and Money Moves

Bumble, the popular dating app, is undergoing significant changes. The company is letting go of 30% of its staff, approximately 240 people. According to Bumble, this move aims to streamline operations and focus on key objectives. The company expects to save $40 million annually, with most of the savings being reinvested into product and technology improvements.

Previous Layoffs and Financial Performance

This is not the first time Bumble has reduced its workforce. In February 2023, the company also cut 30% of its staff, affecting around 350 people. Despite the layoffs, Bumble's shares rose by approximately 20%. Additionally, the company revised its revenue expectations for the current quarter, forecasting earnings between $244 million and $249 million, up from the previous estimate of $235 million to $243 million.

Leadership Changes and Industry Challenges

The changes coincide with the return of Whitney Wolfe Herd, the founder, who will resume her role as CEO in March. She stepped down in 2023 after Bumble reported a 7.7% decline in earnings compared to the previous year. Herd expressed her distress over the company's struggles in a recent interview.

Bumble is not alone in facing challenges. Match Group, which owns Tinder and Hinge, is also struggling to retain users, particularly younger ones. Match recently cut 13% of its staff to reduce costs and improve efficiency.