Bumble, the Texas-based online dating platform has decided to trim its workforce by 30 per cent, globally. This will impact about 240 employees. The company expects to incur a cost of at least $13 million in the third and fourth quarters in paying out severance packages to the impacted employees.
The layoffs—aimed at optimising operations and focusing on priorities, to ensure long-term growth—received the Board’s approval this week. Bumble expects to save $40 million a year after the job cuts. The dating app plans to spend the saved amount on further developing its product and tech.
There is no official announcement regarding the timing of layoff or the roles that will be impacted. However, as per the company’s securities filing, the workforce reduction process will happen over a year or so. It is reported that the cost of the exercise may even go up to $18 million.
The total revenue posted by Bumble in the first quarter was about $247 million, which was almost eight per cent less than what it had earned during the same time last year.
Whitney Wolfe Herd, CEO and founder, Bumble, has reportedly conveyed to the employees that the decision to reduce headcount wasn’t an easy one but was required as part of the rebuilding exercise that is underway at the company.
The platform was launched in 2014 two years after the launch of Tinder, which was co-founded by Herd.
