Popular online dating app, Bumble, is the latest technology company to implement layoffs by cutting 350 employees, constituting approximately 37% of its workforce.
The decision follows the release of Bumble’s fourth-quarter and full-year 2023 results, which fell below Wall Street expectations.
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Bumble’s stock has plummeted by approximately 10%, signalling a turbulent start to 2024.
Bumble’s layoffs align with a broader trend in the technology industry, with layoff statistics indicating 45,000 jobs have been cut since the beginning of 2024.
Lidiane Jones, CEO of Bumble, addressed the company’s performance, stating, “Today, we announced solid full-year results and a bold plan to transform Bumble and lead the company to its next phase of growth and innovation.”
Jones emphasised the company’s commitment to customer-centricity and innovation. “We are taking significant and decisive actions that ensure our customers remain at the centre of everything we do as we relaunch Bumble App, transform our organisation and accelerate our product roadmap,” she said.
Jones, who assumed the CEO role in November after founder Whitney Wolfe Herd stepped down, expressed confidence in her team’s ability to navigate the company’s next chapter of growth.
Bumble, known for allowing women to make the first move on dating apps, faces stiff competition from the Match conglomerate, including Tinder, Hinge, and Match.com.
The dating app industry is under scrutiny, with recent accusations against Match Group of using addictive tactics to keep users engaged. Despite not being involved in the lawsuit, Bumble’s layoffs may reflect broader mistrust of the industry.
Dating apps have struggled to convince Gen Z and Millennials to invest in premium services, as a 2023 study revealed that only 22% of users under 20 years old have paid for dating apps.
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By GlobalData
