Bumble announced plans to lay off 350 employers on Tuesday, reducing its headcount by 30% as part of a larger restructuring plan.
Job cuts across dating app — whose defining feature is that only women can initiate chats with male suitors — is the first big move by CEO Lidiane Jones, who took over in January after serving in the chief executive position at Slack Technologies. (For users looking for a same-sex match, either person can reach out first.)
Bumble said expects to incur about $20 million to $25 million in one-time charges related to the job cuts, the majority of which will be recognized in the first two quarters of 2024.
When The Post sought comment from Bumble, a spokesperson pointed to a note published on Bumble’s site Jones initially shared with the company’s 950 staffers, which said that “Bumble is not the right size or structure we need to be to meet the opportunity ahead.”
“xits will begin immediately for some locations, while in others, a consultation process will begin in accordance with local laws that we expect to conclude in April,” Jones wrote.
Bumble also released its earnings for 2023’s fourth-quarter on Tuesday, which came in below estimates as it struggles with a slowdown in user spending and competition from rival Match Group, which operates Tinder, Hinge and Match.com, among other dating apps.
In the fourth-quarter, Bumble revenue came in at $273.6 million, falling short of the $275.3 million analysts anticipated.
It also posted a surprise loss per share of 19 cents. Analysts on average were expecting a profit of 12 cents per share.
Despite having a disappointing fourth quarter, total paying users across Bumble’s apps increased to 4 million in the three-month period ended Dec. 31 — up from 3.4 million a year earlier.
Jones said on a post-earnings call Tuesday that in the coming months, Bumble plans to relaunch its eponymous app and revamp its premium plus offering, which unlocks unlimited swipes and the ability to get in front of more compatible singles.
Bumble’s premium subscription currently runs users $19.99 on a weekly basis, $39.99 per month of $229.99 for lifetime access to the bonus features.
Tinder has also recently rolled out its newest, ultra-exclusive Tinder Select tier for $500 per month — which allow users unlimited “likes,” less advertisements and the ability to message before matching, among other perks.
In the meantime, Bumble expects current-quarter revenue between $262 million and $268 million, compared with analysts’ average estimate of $277.9 million.
Shares of the Austin, Texas-based company, which also offers dating apps like Badoo, and Fruitz, fell more than 9% at the time of writing.
With Post wires
This story originally appeared on NYPost
