Bumble, the popular dating app, announced on Tuesday its plans to lay off approximately 350 employees, which accounts for about 37% of its workforce. This decision is part of a restructuring plan aimed at driving stronger operating leverage and aligning the company's operating model with its future strategic priorities, as stated in its fourth-quarter report. As of December 31, 2022, Bumble had over 950 full-time employees, according to a filing with the U.S. Securities and Exchange Commission.
Despite the layoffs, Bumble reported a revenue of $273.6 million for the quarter, up from $241.6 million in the same period last year. The company posted a net loss of $32 million, or a loss of 19 cents per share, compared to a net loss of $159.2 million, or 35 cents per share, in the year-ago quarter. Following the announcement, Bumble's shares fell more than 8% in after-hours trading.
CEO Lidiane Jones emphasized that the company is taking significant and decisive action to accelerate its product roadmap. Jones stated that these actions are aimed at strengthening Bumble's foundational capabilities and enabling the delivery of new and engaging user experiences that promote healthy and equitable relationships.
Bumble's decision to reduce its workforce is in line with broader trends in the tech sector, where companies such as Google and Amazon have also implemented job cuts to improve efficiency. According to Layoffs.fyi, an industry tracker, more than 170 tech companies have cut nearly 44,000 jobs in recent months. The tech industry continues to face pressure from investors to streamline operations and drive profitability.