Dating app Bumble has laid off 30% of its workforce
What's the story
Bumble, the popular dating app, has announced a major round of layoffs. The company will be parting ways with around 240 employees, which is nearly 30% of its global workforce. Following the news, Bumble's shares jumped by as much as 12% in pre-market trading in the US. The restructuring is expected to save Bumble $40 million annually, which will be reinvested into product innovation and technology development.
Financial impact
Bumble expects 1-time charges of $13-18M
Bumble expects one-time charges of $13 million to $18 million for employee severance, benefits, as well as related costs. These expenses will mainly be incurred in Q3 and Q4 of this year. To note, last year in February, the company fired around 350 employees, which constituted roughly 37% of its workforce.
Revenue forecast
Firm revises Q2 revenue outlook
Along with the layoff announcement, Bumble also revised its Q2 revenue outlook. The company now expects revenue to be between $244 million and $249 million, an increase from the previous estimate of around $235 million to $243 million. This adjustment comes as part of Bumble's broader strategy following the major workforce reduction.