Bumble to lay off 30% of global workforce
FILE - A person is holding a mobile phone with the Bumble dating app logo on its screen. (Photo by Nikos Pekiaridis/NurPhoto via Getty Images)
Bumble, the popular dating app, plans to layoff 30% of its global workforce amid struggles to retain audiences.
The layoffs will impact about 240 positions, Tech Crunch reported.
Why the layoffs?
Dig deeper:
Bumble plans to use the estimated $40 million annual savings from the layoffs to reinvest it into product and technology development, according to Reuters.
Bumble’s Whitney Herd returned as CEO after stepping down earlier this year. Herd promised to boost the company’s performance and to focus more on user experience rather than revenue.
What they're saying:
"These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted," Bumble said in a statement sent to The Associated Press Wednesday — adding that it was now focused on "moving forward in a way that strengthens our core business" and "positions us for future growth."
Shares for Bumble soared more than 23% following the news. Its stock traded at just over $6.40 as of Wednesday afternoon.
Bumble did not immediately specify when it would implement the layoffs or which roles would be affected.
Match.com announces layoffs
Match.com, which owns rival dating apps such as Tinder and Hinge, announced in March that it would also be laying off 13% of its employees in an attempt to reduce costs, according to a Tech Crunch report.
The Source: Information for this report was taken from reporting by Reuters, Tech Crunch and The Associated Press. This story was reported from Los Angeles.