Bumble plans to cut 350 jobs after reporting lower-than-expected first-quarter revenue projections
Bumble, a US-based online dating platform, announced plans to reduce its workforce by almost 350 positions. This decision comes after the company reported lower-than-expected first-quarter revenue projections amid challenges related to reduced user spending.
As per a report by Reuters, Bumble is expected to witness one-time charges of nearly $20 million to $25 million due to the job cuts, with the majority of these charges expected to be recorded during the first two quarters of 2024.
The dating platform is among the various companies partaking in the wave of layoffs. It is worth noting that these job cuts have hit tech companies the hardest.
Amidst inflation and already elevated borrowing expenses impacting purchases, Bumble is competing with Match Group, its larger rival, which seeks to target a younger user base through aggressive marketing initiatives. However, Match Group also announced revenue for the current quarter that fell below estimates. During a post-earnings call, CEO Jones stated that Bumble plans to relaunch its eponymous app and enhance its premium plus offering.
The online dating company anticipates revenue for the current quarter to range from $262 million to $268 million, contrasting with analysts' average projection of $277.9 million, as per the report. The total number of paying users across Bumble's apps rose to 4 million in the fourth quarter up from 3.4 million the previous year.
This year, leading companies including Google, Meta, Zoom, Microsoft, Vice Media and eBay have executed significant layoffs, affecting numerous employees.