Bumble (NASDAQ: BMBL) moved to shed roughly 240 jobs—about 30 percent of its global headcount—prompting a 16% market share surge, although the company’s stock still trades roughly 40% below year-ago levels.
The dating app operator framed the cuts as “realigning the operating structure to optimize execution on strategic priorities,” and disclosed one-time severance and benefit charges of US$13 million to US$18 million concentrated in the third and fourth quarters of 2025. Management expects the move to free up about US$40 million a year, cash it says will be redirected into product and technology upgrades rather than shoring up the bottom line.
Unlike many cost-cutting announcements, Bumble paired the layoffs with an immediate top-line boost: second-quarter revenue is now projected at US$244 million to US$249 million versus a prior US$235 million-US$243 million range.
Even so, the raised guidance would still leave revenue roughly flat year-over-year, after first quarter sales fell 7.7% to US$247.1 million and ARPPU slid to US$20.24 as paying users plateaued near four million. On those numbers, the planned US$40 million in savings equals about 16% of quarterly revenue—enough to more than double first-quarter net income of US$19.8 million if fully realized.
Founder Whitney Wolfe Herd’s return to the CEO chair in March followed a turbulent year that included two chief executive changes, the discontinuation of side apps Fruitz and Official, and a marketing pullback aimed at arresting churn among Gen-Z users.
The strategy mirrors a broader dating app reset. Rival Match Group trimmed 13% of its own workforce last month after paid users fell 5%.
Information for this briefing was found via The Globe And Mail and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
