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4w ago

Bumble Cuts 30% of Workforce to Fuel AI and Product Growth

Annual savings of $40 million will fund product and technology development with its Q2 revenue outlook rising to $244–249 million.

Shares of Bumble jumped 23% after markets opened in New York.
FILE - The dating app Bumble on a smart phone, June 26, 2024, in New York. (AP Photo/Peter Morgan, File)
Whitney Wolfe Herd was recently reinstated as CEO of Bumble.

Overview

  • The company is eliminating about 240 positions, equal to 30% of its global staff.
  • It expects the layoffs to deliver roughly $40 million in annual cost savings, most of which will be reinvested into product upgrades and artificial intelligence initiatives.
  • Bumble raised its second-quarter revenue guidance to $244 million–$249 million, up from a prior range of $235 million–$243 million.
  • Non-recurring charges related to the workforce reduction are expected to total $13 million–$18 million in the third and fourth quarters of 2025.
  • Founder Whitney Wolfe Herd, who resumed the CEO role in March, is driving the restructuring as user engagement and market value continue to decline since the company’s 2021 IPO.