Bumble Implements Layoffs, Cutting 350 Jobs Amidst Restructuring

Tech giant cites strategic priorities and operational efficiency as reasons for workforce reduction

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Bumble, the popular dating app, announced on Tuesday its intention to lay off approximately 350 employees as part of a restructuring initiative. The move, which represents about 30% of Bumble’s workforce, aims to enhance operating leverage and align the company’s operational model with its future strategic priorities, as outlined in its fourth-quarter report.

According to a company spokesperson, Bumble had over 950 full-time employees as of December 31, 2022. The spokesperson noted that the details of the layoffs will be included in the upcoming annual report, set to be published later this week.

Despite reporting a revenue increase to $273.6 million for the quarter, up from $241.6 million in the same period the previous year, Bumble posted a net loss of $32 million, or 19 cents per share. This compares to a net loss of $159.2 million, or 35 cents per share, in the year-ago quarter. The announcement of the layoffs resulted in Bumble’s shares falling more than 8% in after-hours trading on Tuesday.

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CEO Lidiane Jones emphasized the company’s commitment to taking decisive action to accelerate its product roadmap, stating, “We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships.”

Bumble’s decision to downsize its workforce reflects a broader trend in the tech industry, where companies are under pressure to streamline operations and improve efficiency to meet investor expectations. Notable tech giants such as Google and Amazon have also undergone workforce reductions in recent months, signaling a broader industry-wide trend. According to Layoffs.fyi, an industry tracker, more than 170 tech companies have collectively cut nearly 44,000 jobs in response to market dynamics and investor demands.