Bumble Hits Record Low as It Plans App Overhaul to Revive Growth
- Dating app company to cut 350 jobs to focus on AI and safety
- Quarterly sales and outlook miss analysts’ estimates
Bumble Inc. shares fell to a record low after it announced a weaker-than-expected outlook for sales, underscoring concerns about slowing user growth in the US online dating industry. The company is also cutting about one-third of its workforce after a recent executive shakeup and an overhaul of the app.
The Austin-based company will eliminate about 350 roles globally, it said Tuesday while reporting quarterly results. The cuts will help centralize engineering and product teams in fewer locations and accelerate decision-making so the company can prioritize artificial intelligence and safety features, Chief Executive Officer Lidiane Jones said on a call with analysts. Bumble had more than 950 full-time employees at the end of 2022, of which about 770 are located outside of the US, according to a separate filing.