Bumble to fire 30% of its workforce in restructuring move
Bumble has revealed plans to lay off around 350 employees, which is about 30% of its workforce. The decision is part of a restructuring strategy similar to what's happening at other tech companies like Google, Meta, and Amazon. Bumble's CEO, Lidiane Jones, explained that this "significant and decisive" move aims to speed up the company's product development and align its operations with future goals. Bumble replaced founder CEO Whitney Wolfe Herd with Jones, former CEO of Slack, in November 2023.
Layoffs to drive stronger operating leverage
Bumble believes these layoffs will lead to better operating efficiency. The company's fourth-quarter report indicates that the restructuring will help the dating app continue to offer new and engaging experiences for users, fostering healthy and equal relationships. As of December 31, 2022, Bumble had over 950 full-time employees, and we can expect more workforce-related details in their upcoming annual report later this week.
Bumble's Q4 earnings report reveals revenue growth and net loss
In the fourth quarter, Bumble's revenue increased to $273.6 million from $241.6 million during the same period last year. However, the company reported a net loss of $32 million or 19 cents per share, compared to a net loss of $159.2 million or 35 cents per share in the previous year's quarter. Following the layoff news, Bumble's shares dropped by more than 8% in after-hours trading. However, at the time of writing, the shares were up 3.6% at $13.18.
Growing layoffs in tech sector as companies prioritize restructuring
As per Layoffs.fyi, the tech industry has witnessed the firing of 45,356 employees from 176 companies this year so far. Last year, 1,190 companies had laid off a total of 262,965 workers while 2022 saw 1,064 companies letting go off 165,269 workers.
