Bumble's Bold Move: 30% Workforce Cut Sparks 26% Stock Surge
Shares of Bumble soared more than 26% following the announcement that the dating app company plans to slash approximately 30% of its workforce, cutting around 240 jobs. This strategic downsizing is expected to yield annual savings of about $40 million while incurring restructuring charges between $13 million and $18 million during the third and fourth quarters of 2025.
Leadership and Strategic Shift
Whitney Wolfe Herd, Bumble's founder who briefly stepped down as CEO earlier this year, has since returned to lead the company through this transformative phase. The company emphasized that these layoffs were not undertaken lightly but are part of a deliberate effort to realign Bumble’s operational structure to sharpen its focus on core priorities.
A spokesperson confirmed the company’s dedication to strengthening the business, continuing excellent service for its user base, and positioning Bumble for sustained growth.
Financial Outlook Improves Amid Restructuring
Alongside the workforce reduction, Bumble revised its quarterly forecast upward. Revenue is now projected between $244 million and $249 million, with adjusted EBITDA expectations climbing to a range of $88 million to $93 million. This marks an increase from previous estimates of $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA.
The Road Ahead: Investing in Innovation
The company intends to reinvest the savings from the layoffs into new product development and technology enhancements, signaling a renewed commitment to innovation within the competitive dating app market.
Bumble’s Market Performance So Far
Since its public debut in 2021, Bumble’s stock has experienced significant volatility. The company's market valuation has contracted dramatically from a peak of approximately $7.7 billion to roughly $538 million as of the latest close.
Despite these challenges, the recent surge in share price reflects investor optimism about the company’s strategic changes and future growth potential.