Bumble to Lay Off 240 Employees as Part of Restructuring Efforts
Bumble, the online dating platform headquartered in Austin, Texas, has announced plans to lay off approximately 240 employees, which amounts to about 30% of its global workforce. This decision comes as the company seeks to streamline its operations and focus on strategic goals.
In a recent securities filing, Bumble stated that these layoffs aim to help the company save around $40 million annually. The savings are expected to be reinvested into product and technology development, which Bumble views as essential for moving forward.
Bumble expressed gratitude for the contributions of those affected and emphasized that the decision was not made lightly. The company focuses on strengthening its core business and positioning itself for future growth.
Following this announcement, Bumble’s stock saw a notable increase, rising more than 23% to just over $6.40. However, despite this spike, the company’s stock is still down more than 35% compared to last year and has plummeted nearly 92% since its debut in February 2021.
While Bumble has not specified when the layoffs will take place or which specific roles will be affected, the filing suggests that the process will unfold over the coming months. The company anticipates incurring costs related to the layoffs, including severance pay, which could range between $13 million to $18 million, primarily impacting the third and fourth quarters of the fiscal year.
In a note addressed to employees, Bumble CEO Whitney Wolfe Herd highlighted that the company is at a critical juncture. She explained that rebuilding efforts in the current climate necessitate tough decisions, but are essential for continued success.
Founded in 2014 by Wolfe Herd, the company has faced challenges since going public. While the latest revenue projections for the upcoming quarter indicate a slight increase, overall figures remain lower compared to past performance. Bumble reported a total revenue of about $247 million in its most recent earnings report, reflecting a decline from the previous year.
As Bumble navigates these difficult times, its focus will remain on adapting to changes in the dating landscape and ensuring long-term growth in a competitive market.
