DANA POINT, CALIFORNIA – SEPTEMBER 27: Whitney Wolfe Herd, Founder & CEO, Bumble speaks onstage during Vox Media’s 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 27, 2023 in Dana Point, California. (Photo by Jerod Harris/Getty Images for Vox Media)
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Bumble shares rallied greater than 26% Wednesday after the dating app company revealed in a securities filing that it intends to slash 30% of its workforce, or about 240 roles.
The layoffs will lead to $13 million to $18 million in charges for the corporate hitting within the third and fourth quarters of this yr. Management estimates that the reductions will help the corporate save $40 million annually.
“These decisions weren’t made frivolously, and we’re deeply grateful for the contributions of each worker impacted,” a Bumble spokesperson said in a press release to CNBC. “Our focus now’s on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth.”
Bumble said the cuts are a part of a reconfiguration of its “operating structure to optimize execution on its strategic priorities.” The corporate plans to take a position savings into recent product and technology development.
Shares of the dating app company have plunged since their debut on the general public markets in 2021. Its market value has plummeted from $7.7 billion to about $538 million as of Tuesday’s close.
Founder Whitney Wolfe Herd, who stepped down as CEO initially of 2024, returned to the role earlier this yr.
Together with the job cuts, Bumble updated its previously announced forecast for the present quarter.
The corporate now expects revenues to range between $244 million and $249 million, and adjusted EBITDA between $88 million and $93 million.
That is up from the $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA forecast with Bumble’s first-quarter results last month.
