Layoffs signal a strategic shift toward user experience over growth
Bumble announced Wednesday it will lay off nearly a third of its workforce, marking a major restructuring as the dating app pivots to improve its user experience. The company will eliminate 240 roles, or about 30% of its staff, while simultaneously raising its second-quarter revenue forecast.
Shares of Bumble jumped 19% following the announcement. However, the company’s market value remains just above $500 million — a steep fall from its 2021 IPO peak of around $15 billion, according to LSEG data.
The layoffs come as part of a broader effort led by CEO Whitney Wolfe Herd, who returned to the helm earlier this year with a mandate to boost match quality and product innovation. “These cuts reflect Bumble’s renewed focus on product experience rather than short-term revenue or user growth,” said M Science analyst Chandler Willison.
Industry-Wide Shakeup
Bumble isn’t alone in restructuring. Rival Match Group also announced a 13% reduction in headcount last month, signaling industry-wide challenges. Both companies are under pressure as they struggle to retain Gen Z users and fend off activist investor demands.
Online dating platforms have seen user growth stall, prompting leadership overhauls and a reexamination of their monetization strategies. Bumble’s shift reflects a broader recognition that features alone are no longer enough to drive loyalty and spending, especially during a time of economic uncertainty.
Stronger Outlook, Long-Term Vision
Despite the workforce reduction, Bumble raised its second-quarter revenue forecast to between $244 million and $249 million, up from a previous range of $235 million to $243 million. The upward revision suggests early signs of success from its revamped product strategy.
The company expects to incur between $13 million and $18 million in charges related to the layoffs, primarily during the third and fourth quarters of 2025. However, the move is projected to save approximately $40 million annually, which Bumble says it will reinvest into product and technology development.
In May, Bumble met Wall Street expectations for first-quarter revenue despite reporting a 7% decline. The latest changes aim to stabilize performance and drive longer-term user engagement by refocusing on meaningful connections rather than sheer growth numbers.
