Dating app Bumble is cutting nearly one-third of its workforce as the company struggles to grow and satisfy investors.
In a message to staff, chief executive Whitney Wolfe Herd said the dating industry is at an “inflection point” and changes are needed.
“We must act now to build a company that is strong, thoughtful, and ready for the future,” she explained.
Wolfe Herd, who founded Bumble, had stepped down last year but returned in March to try and revive the company’s fortunes.
Bumble became famous for letting only women send the first message to men after matching. In same-sex matches, either person could message first.
However, the app changed that rule last year in hopes of attracting more users and improving its growth.
When Bumble launched on the stock exchange in 2021, it was valued at over $13 billion, making Wolfe Herd a billionaire at 35.
But since then, Bumble’s share price has fallen sharply and now trades at less than $7 per share.
Investors are losing interest in the online dating market, which has found it hard to get users to pay for services.
Bumble ended last year with 4.1 million paying users – up 11% – but revenue growth stayed below 2%, and the firm posted a loss.
The 240 job cuts will save around $40 million annually, which Bumble plans to spend on new technology.
Other dating apps, like Tinder and Match, are also struggling. Match recently cut 13% of its workforce.
Following Bumble’s announcement, its share price jumped by 20%.
