Bumble on Tuesday announced plans to lay off 350 employees and reduce its workforce by 30% as part of a major restructuring plan.
The dating app’s horizontal hiring is characterized by the fact that only women can initiate chats with male suitors, but the CEO, who took over in January after previously serving as CEO of Slack Technologies, said: This is the first big move by Lydiaan Jones. (For users looking for a same-sex match, it doesn’t matter who contacts you first.)
Bumble said it expects to incur approximately $20 million to $25 million in one-time costs related to the layoffs, the majority of which will be recognized in the first two quarters of 2024.
When the Post reached out to Bumble for comment, a spokesperson said: Note has been published Jones initially shared his opinion on Bumble’s site with the company’s 950 staff that “Bumble is not the right size or organization we need to meet the opportunities ahead.”
“In some regions, withdrawal will begin immediately, while in others a consultation process will begin in accordance with local law, with a conclusion expected in April,” Jones wrote.
Bumble also announced fourth-quarter 2023 earnings on Tuesday, but has struggled with weak user spending and competition from rival Match Group, which operates dating apps such as Tinder, Hinge and Match.com. It was less than expected.
Bumble’s revenue for the fourth quarter was $273.6 million, lower than analysts’ expectations of $275.3 million.
The company also posted an unexpected loss of 19 cents per share. Analysts on average had expected earnings of 12 cents per share.
Despite disappointing fourth-quarter results, Bumble’s total paid users across its apps rose to 4 million in the three months ended December 31, up from 3.4 million in the year-ago period. increased from
Jones said on Tuesday’s post-earnings conference call that Bumble will relaunch its eponymous app in the coming months, unlocking unlimited swipes and the ability to bring more compatible singles to the front in a premium version. It said it plans to revamp its Plus offering.
Bumble’s premium subscription currently costs $19.99 weekly, $39.99 monthly, or $229.99 for lifetime access to bonus features.
Tinder recently rolled out its newest, ultra-exclusive Tinder Select tier for $500 per month. This gives users perks like unlimited likes, fewer ads, and the ability to message before matching.
Meanwhile, Bumble expects revenue for the quarter to be between $262 million and $268 million, compared to analysts’ average estimate of $277.9 million.
Shares of the Austin, Texas-based company, which also offers dating apps like Badoo and Fruitz, were down more than 9% at press time.
with post wire
