Bumble, a once-powerful force in online dating, is facing a reckoning.
Bumble cuts -350 employees as dating apps drops in revenues . The company released poor Q4 results in 2023, that showed a million in net losses as well as 3.6 millions in revenues. While it’s up from the same time a year ago, the results fell short of Wall Street expectations and were coupled with a disappointing Q1 2024 forecast, the stock of Bumble fell by 10 percent after-hours in trading. Bumble is taking a drastic step to stop the bleeding.
CEO Lidiane Jones, CEO of Bumble, announced that Bumble’s workforce of 37 around 350 employees, will be laid off CEO Lidiane Jones announced that Bumble will begin an overhaul of the app that aims to revive growth. The next phase of the product roadmap will be focused on AI and better security procedures, Jones said, as in addition to features that are designed to draw younger users.
“We believe these initiatives will enhance our core capabilities and allow us to continue offering new and interesting user experiences that foster positive and fair connections,” Jones said during an earnings call today. “We have lots of people who are enthralled by the concept of online dating experience -swipes, discovery, and browsing, however, there’s a group of people who want more flexibility in order to interact with and meet individuals in a more natural and natural manner.”
Bumble faces difficulties on multiple fronts, in the face of its primary rival, Match Group, which is the owner of Tinder, Hinge and Match as well as other dating apps is pursuing Gen Z users with increasingly aggressive marketing strategies.
The Bumble’s growth in payers has been decreasing since the end of 2021. Many of the features that Bumble’s apps have introduced over the last few years haven’t been well-received by the user population, Jones said during the conference call.
Bumble has faced internal changes to its organizational structure as a result of the founder Whitney Wolfe Herd stepping down as CEO in November, and moving into the position that of chair. Jones came on board as a consultant from Slack at the beginning of January has appointed four new C-suite executive at Bumble within the last week.
The slower growth of Bumble isn’t just a problem for Bumble. Dating apps, in general -including Match Group’s has seen a drop in revenues from users who aren’t willing to pay to purchase premium add-ons. According to the 2023 Pew Research study, while 41% of people 30 or over pay for apps to meet, only 22% of those younger than thirty — which is the age group considered the most desirable have made the same payment.
Platforms have tried to fight the trend in a variety of ways. Tinder has shifted its focus on relationships that last for a long time which is the important factor for Gen Z that polls indicate are less enthused about hookups and casual relationships. Hinge as well as others is taking a positive approach towards IRL events, and has launched funds and promotions to promote singles-only events.