Online-dating company Bumble Inc. will lay off approximately 350 workers — about 37% of its workforce — as part of a restructuring plan.
Bumble shares
BMBL,
fell about 8% in after-hours trading Tuesday.
The company said Tuesday that it aims to “better align” its operating model with future strategic priorities and intends to drive stronger operating leverage.
Bumble said it expects to incur roughly $20 million to $25 million of non-recurring charges from severance, benefits and related costs, most of which will be recognized in the first half of this year.
“As we look to the year ahead, we are focused on execution and setting the stage for the next phase of growth,” Bumble Chief Financial Officer Anu Subramanian said in a statement. “We are implementing a clear plan designed to drive product velocity and reduce operational friction, which we believe will enable us to invest in our key growth initiatives while strengthening our margin profile and cash-flow potential for the years ahead.”
Austin, Texas-based Bumble had about 950 employees as of the end of 2022, according to FactSet data.
The company recently changed chief executives, with founder Whitney Wolfe Herd stepping aside and former Slack CEO Lidiane Jones taking over in January.
“We are taking significant and decisive actions,” Jones said in a statement Tuesday, as she also announced quarterly earnings and a “bold plan to transform Bumble” and relaunch the dating app.
Bumble reported fourth-quarter revenue that missed analysts’ estimates, as did its current-quarter revenue forecast.
The job cuts are the latest in a continuing wave of layoffs over the past year-plus, especially by tech companies. Also on Tuesday, Sony Group Corp.
SONY,
cut 900 jobs in its PlayStation unit, while Monday saw online travel company Expedia Group Inc.
EXPE,
lay off about 1,500 employees as it works to “recalibrate resources.”
Bumble shares are down about 45% over the past 12 months.
This story originally appeared on Marketwatch
