Match Group, parent company of Tinder, is set to trim its workforce by six per cent. This also means, it will stop live-streaming services on its dating apps, following pressure from investors to bring about changes.
Starboard Value, activist investor recently built a 6.6 per cent stake in Match Group, pushing the company to consider selling in case it is unable to revive or improve the business. Other investors, including Elliott Investment Management and Anson Funds Management are also urging for changes, as they feel Match has been facing a growth slump. The businesses are reportedly unable to scale and also facing stiff competition. More investment will be needed to stop them from delivering below the expected margins.
The job cuts are expected to result in savings of about $13 million.
Meanwhile, Tinder appears to be somewhat stable, and Hinge is all set for growth with new subscriptions, updates and strong marketing.
The Texas-based Match Group’s offerings, other than Tinder and Hinge, include Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar and Hakuna, all aimed at helping subscribers connect with the right people. Match has reportedly closed its Hakuna app, which used to offer live-streaming services in Japan and South Korea.
Match is reportedly looking to add new inclusive features to Tinder, as the younger generations seek inclusive gender identities as well as safety and trust features. The operator of dating apps posted an eight per cent drop in paid users on Tinder, falling to 9.6 million in Q2. The decline was of nine per cent in the previous quarter.
