Online dating company Bumble Inc. It laid off nearly 350 workers – about 37% of its workforce – as part of a restructuring plan.
bumble Shares BMBL,
It fell about 8% in after-hours trading on Tuesday.
The company said on Tuesday that it aims to “better align its operating model with future strategic priorities and intends to enhance operational leverage.”
Bumble said it expects to incur approximately $20 million to $25 million of one-time charges from severance pay, benefits and related costs, most of which will be recognized in the first half of this year.
“As we look to next year, we are focused on executing and paving the way for the next phase of growth,” Anu Subramanian, Bumble's chief financial officer, said in a statement. “We are implementing a clear plan designed to increase product agility and reduce operational friction, which we believe will enable us to invest in our key growth initiatives while enhancing 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 CEOs, with founder Whitney Wolfe Herd stepping aside and former Slack CEO Lydian Jones taking over in January.
“We are taking important and decisive action,” Jones said in a statement on Tuesday, as she also announced quarterly earnings, a “bold plan to transform Bumble” and the relaunch of the dating app.
Bumble reported fourth-quarter revenue that beat analyst estimates, as did current-quarter revenue expectations.
The job cuts are the latest in a steady wave of layoffs over the past year, especially by technology companies. Also on Tuesday, Sony Group Corp.
It cut 900 jobs at its PlayStation unit, while on Monday, online travel company Expedia Group Inc.EXPE,
It lays off about 1,500 employees as it works to “recalibrate resources.”
Bumble shares are down about 45% over the past 12 months.
