Check out what’s clicking on FoxBusiness.com.
Bumble Inc. disclosed Wednesday that it will cut its workforce by 30%.
The move comes as the dating app company seeks to realign its operating structure to “optimize execution on its strategic priorities,” Bumble said in a Securities and Exchange Commission (SEC) filing.
Approximately 240 people will lose their jobs in the planned layoffs.
CEO and founder Whitney Wolfe Herd said in a message to staff that the company needed to “take decisive action to restructure to build a company that’s resilient, intentional, and ready for the next decade.”
Whitney Wolfe Herd, Founder and Executive Chair of Bumble, speaks during The Wall Street Journal’s Future of Everything Festival at Spring Studios on May 21, 2024, in New York City. (Dia Dipasupil/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Bumble must become a “faster-more decisive, and more agile organization” while “prioritizing core product innovation and addressing the big opportunities in how technology shapes human connection” and “returning to a member-first approach and investing in member health,” she said.
Bumble projected it will have $13-18 million worth of charges from employee severance, benefits and other related charges in connection to the layoffs largely. Those will largely happen in the third and fourth quarters of this year.
Laid-off employees will receive “structured” severance and “transitional support” from the company, according to Herd.
MICROSOFT PLANS ‘SUBSTANTIAL’ JOB CUTS ACROSS XBOX DIVISION
“These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted. 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,” a Bumble spokesperson told FOX Business.
The Bumble dating app logo is seen in this photo illustration on Aug. 22, 2023, in Warsaw, Poland. (Jaap Arriens/NurPhoto via Getty Images)
The job cuts will lead to annual savings of up to $40 million. Most of that will go towards “strategic initiatives including product and technology development,” the company said in the SEC filing.
A laptop keyboard and Bumble on App Store displayed on a phone screen. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
Bumble also said that it now expects the dating app company to notch revenue between $244 million and $249 million for the second quarter. Its EBITDA for that three-month period, meanwhile, is forecasted to come in between $88 million and $93 million.
CLICK HERE TO READ MORE ON FOX BUSINESS
In the first quarter, it saw its revenue drop year-over-year to $247.1 million.
Bumble’s stable of apps includes its namesake app, Bumble for Friends, Badoo and Geneva. In February, the company said it was shutting down two apps, Fruitz and Official, something it said would be completed in the first six months of this year.
The company had a total of four million paying users at the end of the first quarter.
