In a sweeping cost-cutting move, online dating platform Bumble Inc. has announced plans to lay off approximately 30% of its global workforce—amounting to around 240 jobs—as part of a wider strategy overhaul intended to revive its core business and reposition the company for future growth.

The company disclosed the decision in a regulatory securities filing this week, confirming that its board of directors had approved the cuts as part of a realignment of Bumble’s operational structure. The decision comes at a crucial juncture for the Austin, Texas-based firm, which has faced persistent financial challenges since going public in 2021.

“These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted,” Bumble said in a statement shared with The Associated Press on Wednesday. “We are now focused on moving forward in a way that strengthens our core business and positions us for future growth.”

The company expects the layoffs to generate approximately $40 million in annual cost savings, a significant sum that it says will be reinvested into product innovation and technology development, highlighting Bumble’s renewed focus on improving the user experience and maintaining competitiveness in an evolving digital dating landscape.

While the company did not detail exactly when the layoffs would be executed or which roles would be affected, the securities filing indicated that the process will extend throughout the year. Bumble anticipates between $13 million to $18 million in related costs, including severance payments, to be incurred primarily during the third and fourth quarters of its 2025 fiscal year.

In a note to employees on Wednesday, Bumble’s founder and CEO Whitney Wolfe Herd described the decision as part of a broader rebuilding effort. “Bumble, like the online dating industry itself, is at an inflection point,” she wrote, underlining the urgent need for transformation amid intensified competition and shifting user behaviours.

Wolfe Herd, who co-founded Tinder in 2012 before launching Bumble in 2014, previously served as the company’s CEO from 2020 to January 2024. She resumed the top role in March this year in a bid to stabilise the company’s strategic direction and refocus leadership priorities. Her return was viewed by many analysts as an attempt to steer Bumble back to growth amid growing investor anxiety.

Despite a 23% surge in Bumble’s share price following the announcement—trading at just over $6.40 on Wednesday afternoon—the rally masks deeper investor concerns. The company’s stock is still down over 35% in the last year and has plummeted nearly 92% since its IPO in February 2021, when it debuted to much fanfare.

Recent earnings have also been underwhelming. In its first-quarter report, Bumble recorded a revenue of $247 million, marking a nearly 8% decline compared to the same quarter the year prior. While the company has revised its second-quarter revenue forecast to between $244 million and $249 million, up from earlier estimates, it still lags behind the $269 million posted for Q2 in 2024.

This pattern of shrinking revenue and declining investor confidence underscores the urgency behind Bumble’s decision to trim its workforce and redirect focus toward core technological and product competencies.

Bumble’s predicament is emblematic of a broader challenge facing dating platforms. As user growth stagnates and monetisation models plateau, companies are being forced to evolve rapidly or risk obsolescence. For Bumble, this means not only cutting costs but reimagining how to deliver differentiated value in an increasingly commoditised market.

Analysts suggest the company must balance these workforce reductions with retaining critical talent, especially in product and engineering roles, as it competes with rival apps that are aggressively experimenting with AI-driven matching algorithms, gamified experiences, and integrated social features.