Are dating apps becoming dinosaurs?
Bumble announced on Tuesday that it could be cutting over 30% of its total global workforce (over 350 employees) during its Q4 2023 and full-year 2023 earnings report.
The shift comes as Gen Z starts to move away from dating apps. A 2023 Statista survey showed that millennials within the U.S. make up 61% of dating app users while Gen Z only accounts for 26% of users.
Still, Bumble had a powerful Q4, with revenue coming in at $273.6 million which was up nearly $30 million from the identical time last yr.
“We’re taking significant and decisive actions that ensure our customers remain at the middle of all the things we do as we relaunch Bumble App, transform our organization and speed up our product roadmap,” said Lidiane Jones, CEO of Bumble Inc. in a company release. “We consider these actions will strengthen our foundational capabilities and enable us to proceed delivering recent and fascinating user experiences that create healthy and equitable relationships.”
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The corporate is estimated to spend between $20 million and $25 million on severance, advantages, and other costs for workers who’ve been let go.
Bumble is not the primary within the dating app category to start mass layoffs.
Last yr, rival Tinder announced that it could be slashing 8% of its total global workforce, mainly in its recruiting sector.
Bumble was founded by Whitney Wolfe Herd in 2014 in an try to be a female-focused dating app where females are required to initiate the conversation once a pair is matched. The corporate officially went public in 2021.
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In November 2023, Wolfe Herd was replaced by former Slack CEO Lidiane Jones.
Bumble surpassed $1 billion in total revenue for 2023, a 16.4% increase from the yr prior. The corporate was down over 53% yr over yr as of Thursday afternoon.