Match Group Inc (NASDAQ:MTCH)., the parent company of Tinder, plans to reduce its global workforce by 6% due to a decline in users paying for Tinder.
The company, which also owns Hinge, Plenty of Fish, and OKCupid, reported an 8% drop in paying Tinder users. Job cuts will primarily result from shutting down its live-streaming app Hakuna and removing live-streaming features from its dating apps.
Despite being the world's most popular dating app, Tinder has seen subscriber declines for several quarters.
The latest dip, however, was less severe than anticipated. Match Group cited a shift in user preferences toward more authentic, lower-pressure experiences as a reason for Tinder’s struggles. In response, Tinder will test new features aimed at enhancing user interaction.
Tinder’s recent innovations include allowing friends and family to play matchmaker and using AI to select profile pictures. While Tinder’s direct revenue grew by just 1%, Hinge's revenue increased by 48%, offering some hope for Match Group.