Dating Apps Face Tough Times: Bumble's Big Changes

Bumble, a popular dating app, recently made a big move. They cut 30% of their workforce. This means about 240 people lost their jobs. This news came as a shock to many, especially because Bumble had already planned to cut costs. They had announced $15 million in cuts for the second half of the year. But this was even more than expected. Despite the layoffs, Bumble is putting most of the savings back into the business. This could be for improving their product, technology, or other strategic areas. However, this leaves them with little room for future cuts. A Bumble spokesperson said the decision was not easy. They expressed gratitude for the employees who were affected. Dating apps are facing tough times. Many people, especially younger generations, are turning away from these apps. They feel like just a number and struggle to find meaningful connections. Bumble's revenue has been dropping. In the first quarter, their revenue was down by 8%, and the average revenue per paying user was down by 7. 3%. The number of users also dropped from 58 million in 2023 to 50 million in 2024. Whitney Wolfe Herd, the founder of Bumble, returned as CEO after a 14-month break. During her absence, the company's share price fell, and the dating app industry's reputation suffered. Wolfe Herd admitted that dating apps have issues. She said they are rooted in rejection and judgment. She plans to overhaul the company and the app to address these problems. Bumble also raised its revenue forecast for the second quarter. They expect revenue between $244 million and $249 million. This is higher than their previous forecast of $235 million to $243 million. However, analysts warn that this does not mean online dating trends are improving. They expect the company's revenue to continue declining in the second half of the year.