Austin-based Bumble to lay off roughly 30% of workforce. Here's what we know
Online dating app Bumble announced Tuesday that it will be laying off roughly 350 employees as part of a “restructuring plan” for a more "agile" future.
The decision comes after the Austin-based company reported increased revenue and number of paying users last year. However, the company is still reporting a net loss of about $1.9 million.
According to a statement from CEO Lidiane Jones, “There continues to be great market demand for connection and tremendous opportunity for our business, but we have been affected by a recent slowdown in some markets, and are also experiencing some execution challenges that have slowed our ability to innovate appropriately for our customers.”
At the end of 2022, Bumble reported having 950 full-time employees according to a filing with the U.S. Securities and Exchange Commission. This means the layoffs will represent about a 35% reduction in its workforce — though the company insists that its most recent numbers represent a reduction of 30%.
Shares of Bumble fell more than 8% in after-hours trading Tuesday.
Fourth-quarter report spells out a new strategy for Bumble
In a report analyzing the last year for Bumble, the company said it would be reducing in size “to better align its operating model with future strategic priorities and to drive stronger operating leverage.”
According to the report, 2023 was largely a positive year for Bumble. The company increased revenue from $903.5 to $1 billion, increased paying users by 16.9% and drastically reduced losses from $114.1 million in 2022 to just $1.9 million in 2023.
Jones said in a statement that the numbers from 2023 reflect a change in strategy to have a more “agile functional operating model.” She also said that right now the company is too big to meet its goals and it needs to be a “leaner, more agile and more efficient company.”
Bumble did not respond to American-Stateman requests asking what the impact of the layoffs would look like in Austin — where the company is headquartered. It did say, however, that affected employees would be offered severance, bonuses, outplacement services, health care stipends and mental health services.
Layoffs coming in waves across the tech industry
The news of layoffs at Bumble echoes what other tech companies are implementing at the moment. This year alone, Google announced layoffs that could affect Austin, Unity announced it would be cutting 100 jobs in Austin, VMware announced it would be slashing 577 jobs in Austin, and, most recently, Expedia announced it would be laying off dozens of employees in Central Texas.
Accenture has also announced layoffs affecting hundreds of workers in recent WARN notices, and, in November, Cedar Park-based Hyliion cut 150 people, or two-thirds of its staff, as it pivoted its focus to generators.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.
This article originally appeared on Austin American-Statesman: Bumble to layoff about 30% of employees; Austin impact still unknown
