Bumble to Cut 240 Jobs in a Bold Move to Restructure Operations

The online dating app Bumble intends to fire about 240 workers, or nearly 30% of its workforce worldwide. Bumble said in a securities filing that the cutbacks were agreed to by the board this week as the company reorganises its operations to better execute its strategic priorities.

A large portion of the $40 million in cost savings the Austin, Texas-based company anticipates from the labour cutbacks will go towards product and technology development.

In a statement sent to a media outlet on June 26, Bumble stated that these decisions were not made hastily and that it was "deeply grateful for the contributions of every employee impacted."

The company is now focussed on moving forward in a way that strengthens its core business and positions it for future growth.

Further Details Still Remain Confidential

When the layoffs will take place and which responsibilities would be impacted were not immediately made clear by Bumble. However, its securities filing indicated that the process would continue into the following quarter.

It stated that it anticipates spending between $13 million and $18 million, mostly in its third and fourth fiscal quarters, on layoff-related expenses, including severance for affected employees.

Whitney Wolfe Herd, the founder and CEO of Bumble, stated in a June 25 letter to staff members that "Bumble, like the online dating industry itself, is at an inflection point." She pointed out that the business has been rebuilding lately, which necessitates difficult choices.

Bumble Going Through Financial Challenges

Two years after co-founding Tinder in 2012, Wolfe Herd launched Bumble in 2014. She returned to the top position in March after previously serving as Bumble's CEO from 2020 to January 2024.

Since going public in 2021, Bumble has had difficulties in the market. Even though shares increased on June 25, the company's stock has nevertheless dropped more than 35% in the past year and about 92% since its February 2021 launch.

Bumble's most recent first-quarter profits showed a total revenue of almost $247 million, which was over 8% less than the same time last year. For the second quarter of its fiscal year 2025, the business anticipates earning between $244 million and $249 million, it announced on 25 June.

Although it is more than earlier projections, it is still less than the $269 million it disclosed for the second quarter of 2024.

Layoffs have Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

According to reports, AI-led restructuring and performance-based terminations are part of the corporations' goals to increase the effectiveness of their personnel.