Bumble Cuts 30% of Workforce Amid Industry Challenges

Bumble, the popular dating app, has announced significant workforce reductions, cutting 30% of its employees. This move has surprised analysts, including those from JPMorgan, who had not anticipated the magnitude of the layoffs. The company's decision to reduce its workforce is part of a broader strategy to reinvest savings into other areas of the business. This restructuring is likely aimed at improving operational efficiency and focusing resources on growth initiatives. The layoffs come at a time when the company is facing increased competition and economic uncertainties, making cost-cutting measures a necessary step to ensure long-term sustainability.

Bumble's decision to reduce its workforce by 30% is a bold move that reflects the company's commitment to adapting to changing market conditions and positioning itself for future success. The company had already committed to $15 million in cost cuts, but the additional layoffs suggest a more aggressive approach to cost management. The layoffs, which amount to about 240 jobs, were announced via an 8-K filing on Wednesday.

Despite the layoffs, Bumble is putting most of the savings back into the business, according to JPMorgan. This could be used for product development, technology improvements, or other strategic areas. The news also indicates that Bumble has little room left for future cuts, suggesting that the company is taking significant steps to stabilize its operations.

The decision about the layoffs was “not made lightly,” a Bumble spokesperson stated. “We are deeply grateful for the contributions of every employee impacted,” the spokesperson said. “Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth.”

Bumble's struggles are not unique in the dating app industry. Many dating apps have been grappling with declining user numbers and revenue. Gen Zers and millennials have started to shun the apps, which many regard as a “wasteland.” Common complaints include feeling like a number, a lack of luck in finding the right match, and fewer opportunities to meet a partner in real life.

During the first quarter, Bumble's revenue was down 8% and its average revenue per paying user was down 7.3%. Bumble usership peaked at 58 million users in 2023, but dropped to 50 million in 2024. In late March, Bumble founder Whitney Wolfe Herd returned as CEO after a 14-month hiatus. During her break, she served as board chair while the company’s share price nosedived, younger generations broke up with dating apps, and the industry’s reputation deteriorated.

Even Wolfe Herd admitted the pitfalls of dating apps. “They are rooted in rejection and judgment,” Wolfe Herd said. “You are judging people, and they are judging you. You’re being rejected, and you’re rejecting. These are not healthy dynamics.” In turn, Wolfe Herd also stated she plans to overhaul the company and app, a promise partially fulfilled upon the news of layoffs.

Bumble also raised its revenue forecast, another surprising move for the business. According to an 8-K filing, Bumble said it expects revenue between $244 million and $249 million for the second quarter. That’s up from the company’s previous forecast of $235 million to $243 million. However, analysts warned that Bumble’s revenue update isn’t a sign online dating trends are improving, and they expect the company’s year-over-year revenue declines to continue during the second half of the year.

JPMorgan analysts said they’re “encouraged by the financial discipline Whitney has shown” during her second tenure as CEO, but “remain Underweight-rated with industry trends still challenged and a long way to go to return Bumble app to growth.”