Dating app Bumble announced plans to lay off almost a third of its workforce as part of a bid to return to a “start-up mentality” as it fights to revive growth.
The Austin, Texas-based company is cutting about 240 roles, or 30% of its global staff, amid a turnaround effort. Its stock has tumbled since the firm went public in 2021.
Founder Whitney Wolfe Herd, who stepped down as CEO in 2024 but returned earlier this year, said Bumble needed to take “decisive action” in order “to restructure to build a company that’s resilient, intentional, and ready for the next decade” in an email to staff.
“We’ve reset our strategy, and are going back to a start-up mentality – rooted in an ownership mindset and team structures designed for faster, more meaningful execution,” she wrote.
Shares in Bumble rallied some 24% during early trading in New York on Wednesday.
Bumble said it will incur non-recurring charges of between $13m and $18m for employee severance, benefits and related charges, primarily during the third and fourth quarters of 2025.
The company expects to generate “up to” $40m in annual cost savings, which it plans to reinvest in initiatives such as product and technology development, according to a stock market filing.
The company also raised its second-quarter revenue forecast to a range of $244m to $249m, up from the prior view of $235m to $243m.
“In recent months, we’ve been rebuilding – returning to what makes us trusted, unique, and deeply human,” wrote Herd. “But intentional rebuilding requires hard decisions. Today, we are marking one of the most difficult: we are reducing the size of our team. This decision is not a reflection of any individual but rather where we are going as a company and what we are building for.”
Reuters contributed reporting