Bumble Inc (NASDAQ:BMBL) has unveiled plans to cut over one-third of its staff as the dating website operator anticipates continued pressure on user spending in the coming months.
Some 350 roles will be axed, equating to around 30% of Bumble’s workforce, “to better align its operating model with future strategic priorities and to drive stronger operating leverage,” the firm said on Tuesday.
The news came as Bumble reported lower-than-expected revenue for the three months to December, alongside a surprise loss.
Though revenue climbed 13.2% year on year to US$273.6 million, consensus had been for a steeper rise to US$275.3.
Markets had predicted a US$0.12 per share profit meanwhile, with Bumble reporting a US$0.19 loss.
The disappointing earnings come after the sector has suffered from a wider squeeze on consumer spending, with the likes of premium online dating offerings having been hit.
Larger rival Match Group, which owns Tinder and Hinge, itself forecast current-quarter revenue below expectations last month.
“As we look to the year ahead, we are focused on execution and setting the stage for the next phase of growth,” chief financial officer Anu Subramanian said.
“We are implementing a clear plan designed to drive product velocity and reduce operational friction.”
For the ongoing first quarter, total revenue is set to sit between US$262 million and US$268 million, Bumble forecast, below analyst expectations of US$277.9 million.
Bumble said the restructuring would cost between US$20 million and US$25 million over the first two quarters of the year, meanwhile.
Shares dipped 9.7% to US$11.90 in pre-market trading.