Bumble Inc. announced on Wednesday that it will lay off roughly 240 employees — about 30% of its global workforce — as part of a broader restructuring effort aimed at reducing costs and boosting innovation in a maturing online dating market.
The announcement sent Bumble shares soaring more than 26% in early trading on Tuesday
The layoffs will result in non-recurring charges of between $13 million and $18 million for severance, benefits, and other related costs, which will largely be reflected in the third and fourth quarters of 2025, the company said.
However, Bumble expects the move to generate $40 million in annual cost savings, which it plans to reinvest in product and technology development.
BMBL Q2 outlook raised despite industry slowdown
Alongside the layoffs, Bumble raised its second-quarter revenue forecast to a range of $244 million to $249 million, an increase from its earlier guidance of $235 million to $243 million.
Q2 adjusted EBITDA is now expected to be between $88 million and $93 million, up from a prior guidance of $79 million to $84 million.
The revised outlook reflects optimism about a more stabilized financial performance, even as the dating app sector continues to wrestle with user fatigue and macroeconomic headwinds.
In the first quarter, Bumble posted revenue of $247.1 million, narrowly surpassing analyst expectations of $246.2 million, according to LSEG data.
The result included a foreign currency drag of nearly $5.9 million.
Despite reporting a 7% year-over-year revenue decline in Q1 and a slight dip in paying users — down nearly 1% to 2.7 million — Bumble’s ability to meet Wall Street estimates last month helped allay investor concerns as the shares jumped by more than 20% post the announcement.
Jamie Lumley, a fundamental analyst at Carbon Arc, noted after the Q1 results:
“Given that Bumble is in a mature market that is vulnerable to macroeconomic headwinds, there is some encouragement to be taken from these numbers about how Bumble can weather the current environment.”
The company has also trimmed its marketing spend by $20 million to help improve margins.
Bumble follows Tinder parent in layoffs as online dating sector faces headwinds
The restructuring mirrors a broader trend in the online dating space.
Last month, Match Group, which owns Tinder, said it would cut 13% of its workforce as part of its business revamp.
The online dating sector has faced headwinds, with persistent inflation and limited feature innovation driving users away from platforms like Tinder and Bumble.
Both companies are racing to reinvigorate their platforms with new features, including artificial intelligence tools designed to improve match quality and user experience.
Bumble has also trimmed its marketing spend by $20 million to help improve margins.
According to UBS, Bumble is now focused on a smaller but more engaged user base, shifting away from aggressive performance marketing.
“These efforts are expected to weigh on near-term payer growth and revenue,” UBS said in a note last month.
Stock rally follows JPMorgan’s downgrade this month
Despite the improved outlook and investor enthusiasm, skepticism remains.
JPMorgan downgraded Bumble stock to “underweight” earlier this month, citing declining US app downloads and weakening trends among Gen Z users.
“Online dating category remains challenged, with Gen Z product/market fit issues,” JPM said.
The brokerage maintained its price target of $5 per share, warning of further downside risks to revenue and net user additions in the second half of the year.
Bumble’s challenge remains balancing short-term financial discipline with long-term platform innovation — a task made more urgent by a softening user base and intensifying competition in the dating app industry.
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