Bumble announced on June 25, 2025, that it will lay off 30% of its workforce, impacting around 240 employees.

This decision was detailed in a securities filing, which indicated that the layoffs are part of a plan to restructure operations and concentrate on strategic priorities.

The company anticipates annual savings of US$40 million from this move. Most funds will be reinvested into product and technology development.

Bumble also expects nonrecurring charges between US$13 million and US$18 million for severance and related costs for affected employees in the third and fourth quarters of 2025.

This announcement follows a previous round of layoffs in February 2024. During that round, Bumble also reduced its workforce by 30%, affecting around 350 employees.

The layoffs come months after the company’s founder, Whitney Wolfe Herd, returned as CEO in March 2025 after previously stepping down in 2023.

Additionally, Bumble raised its second-quarter revenue forecast to between US$244 million and US$249 million, increasing from its earlier estimate of US$235 million to US$243 million.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Dating app industry facing synchronized decline after pandemic boom

Bumble’s second 30% workforce reduction in 2025 mirrors broader industry struggles, with rival Match Group cutting 13% of its staff (325 jobs) just two months earlier in May 1.

Both companies report alarming metrics: Bumble’s Q1 revenue decreased 8% to $247 million with 104,000 fewer paying users quarter-over-quarter 2, while Match’s revenue declined 3% to $831.2 million with paid users dropping 5% 3.

This industry contraction suggests a structural shift rather than company-specific issues, as the dating app market faces difficulties attracting and retaining younger users post-pandemic.

The financial markets have punished both companies severely, with Bumble’s stock down 92% from its IPO price 4 and Match Group down over 70% in the past five years 5.

This decline across multiple companies indicates a potential saturation point in the dating app business model, as cost-cutting becomes the primary strategy rather than growth initiatives.

2️⃣ Founder returns becoming common crisis response strategy

Whitney Wolfe Herd’s return as CEO in March 2025 represents a growing trend where companies bring back founders during periods of significant decline.

The founder specifically acknowledged the emotional connection to the company’s performance, stating “Bumble needs me back… watching it fall from its peak has been very hard” in a New York Times interview [from original article].

This return-of-founder strategy appears to have initially resonated with investors, as Bumble’s stock jumped 20% following the layoff announcement despite the company’s continued operational challenges 4.

The leadership change coupled with aggressive cost-cutting (expected to save $40 million annually) follows a common turnaround playbook of founder-led companies facing existential threats 6.

Historical data shows Bumble had already experienced a massive 80% stock decline by November 2023 7, indicating persistent fundamental challenges that preceded the founder’s return and suggesting deeper industry issues beyond management execution.

3️⃣ Dating apps struggling with rapidly shifting user preferences

The contrasting performance within Match Group’s portfolio reveals evolving user preferences. Tinder experienced a 7% decline in subscribers, while Hinge saw a 23% increase in paying users 5.

This divergence suggests younger users are gravitating toward more relationship-focused apps (Hinge) over casual dating platforms (Tinder), forcing companies to quickly pivot their product strategies.

Bumble’s decision to reinvest most of its $40 million in savings into product and technology development indicates recognition of this fundamental shift in consumer preferences 4.

Both companies are experimenting with AI-driven features, with Match reporting that Hinge’s new AI capabilities resulted in a 15% increase in matches 8, signaling the industry’s belief that technological innovation might reverse declining engagement.

The dating app sector’s struggles parallel other social media platforms facing challenges with younger user retention, as Gen Z shows different digital social behaviors than previous generations who embraced the first wave of dating apps.

……