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Will dating apps become dinosaurs?
Bumble announced on Tuesday that it will cut more than 30% of its global workforce (over 350 employees) during the period. Fourth quarter 2023 and full year 2023 earnings report.
This shift comes as Gen Z begins to move away from dating apps. According to a 2023 Statista study, millennials make up 61% of dating app users in the US, while Gen Z only makes up 26% of users.
Still, Bumble had a strong fourth quarter, with revenue of $273.6 million, up nearly $30 million from the same period last year.
“As we relaunch the Bumble App, transform our organization, and accelerate our product roadmap, we’re excited to announce that our customers are driving everything we do,” said Lydiaan Jones, CEO of Bumble Inc. “We are taking important and decisive actions to ensure we remain front and center,” a company release said. “We believe these efforts will strengthen our fundamental capabilities and enable us to continue to deliver new and engaging user experiences that create healthy and equitable relationships.”
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It is estimated that the company will spend between $20 million and $25 million on severance, benefits and other costs for laid-off employees.
Bumble isn’t the first dating app to initiate mass layoffs.
Last year, rival Tinder announced it would cut 8% of its global workforce, primarily in recruiting.
Bumble was founded by Whitney Wolfe Herd in 2014 with the goal of being a female-centric dating app that requires women to start a conversation once a pair matches. The company officially went public in 2021.
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In November 2023, Wolfe Herd was replaced by former Slack CEO Lydiaan Jones.
Bumble’s total revenue in 2023 exceeded $1 billion, an increase of 16.4% from the previous year. The company was down more than 53% year over year as of Thursday afternoon.
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