Dating applications. Photo: Boumenjapet | Dreamstime.com
The dating application Bumble dismisses almost a third of the staff, in the context of doubts that exist among investors about its prospects, reports the BBC.
In a note to employees, the executive director, Whitney Wolfe Herd, said he is responsible for the pressures the company faces, at a time when the dating industry is in front of an “inflection point”.
“We have to take decisive measures to restructure and build a resilient company (…) and prepared for the next decade,” she said.
Wolfe Heard, the founder of the company, resigned from the management in 2024, but returned in March, in an attempt to change the prospects.
Bumble, who also owns Badoo, has been devoted as a dating application by the fact that women were responsible for initiating dialogue. In the case of the same -sexed people, any of them could send the first message.
The company had been evaluated at over $ 13 billion when it debuted on the stock exchange in 2021, which made the founder Wolfe Herd, at that time 35, the youngest woman in the world who became a billionaire on her own. Currently actions are traded with less than $ 7 each.
The prospects of the investors worsened about the dating industry, who struggled to convince the users to pay for services.
At the end of last year, Bumble reported 4.1 million paying users in its applications, up about 11% compared to the previous year. However, the company's revenues increased by less than 2%, and overall lost money.
The company said that the reduction of jobs, targeting 240 jobs, will contribute to lowering $ 40 million per year, and the money saved will be redirected to efforts such as the development of technology.
Other companies in the industry, such as Match and Tinder, have faced similar difficulties. Match has announced that it reduces the jobs by 13%.
Bumble shares increased by 20% after announcing positions.
Photo: Boumenjapet | Dreamstime.com
