Bumble Shares Surge as Company Announces Workforce Reduction and Strategic Realignment
Shares of dating app company Bumble Inc. jumped more than 26% on Wednesday following the company’s announcement that it will lay off approximately 30% of its workforce, or around 240 positions, as part of a broader restructuring plan aimed at cost savings and long-term growth, CNBC reports.
In a securities filing, Bumble said the move is intended to optimize its operating structure and strengthen its focus on core business priorities, product innovation, and technology development. The job cuts are expected to result in charges of $13 million to $18 million, impacting the company’s third and fourth quarters this year.
Despite the near-term costs, Bumble projects the layoffs will generate annual savings of $40 million. A company spokesperson emphasized that the decision was “not made lightly” and reaffirmed Bumble’s commitment to serving its user base while preparing for future expansion.
“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,” the spokesperson said in a statement.
The restructuring follows the return of founder Whitney Wolfe Herd as CEO earlier this year, after briefly stepping down from the role at the beginning of 2024. Under Wolfe Herd’s renewed leadership, Bumble appears to be refocusing on foundational growth strategies in response to mounting competition and shifting user behavior in the online dating space.
Alongside the restructuring announcement, Bumble also raised its financial guidance for the current quarter. The company now anticipates revenue between $244 million and $249 million, up from its previous estimate of $235 million to $243 million. Adjusted EBITDA is also expected to increase, now forecast between $88 million and $93 million, compared to the earlier range of $79 million to $84 million.
Bumble’s stock has struggled since its 2021 IPO. The company, which debuted with a market valuation of $7.7 billion, had seen that figure drop to around $538 million as of Tuesday’s market close. Wednesday’s stock surge offered a rare rebound for the company amid a challenging landscape for publicly traded tech firms.
The changes at Bumble come as the broader digital dating industry adapts to evolving consumer preferences and economic headwinds. The company has not yet detailed specific departments or geographies affected by the layoffs.
Bumble says the reorganization aims to ensure it is “better equipped to deliver long-term value” to shareholders and users alike.
