Shares of Bumble Inc (NASDAQ:BMBL) jumped 20% on Wednesday after the dating app operator said it would cut roughly 30% of its global workforce in a bid to streamline operations and reinvest in core initiatives.
The layoffs will affect about 240 employees and are expected to generate up to $40 million in annual cost savings, Bumble said in a statement.
The company anticipates incurring $13 million to $18 million in restructuring charges, mostly in the third and fourth quarters of 2025.
The company said most of the savings will be reinvested in strategic priorities, including product and technology development.
Bumble also trimmed its second-quarter outlook, forecasting revenue between $244 million and $249 million and adjusted EBITDA of $88 million to $93 million.
The restructuring is part of a broader effort by new CEO Lidiane Jones, who took the helm in early 2024, to revitalize the company’s platforms and re-engage its user base amid fierce competition in the online dating industry.
Bumble, which went public in February 2021 at a valuation of $7.7 billion, has seen its market capitalization shrink to about $625 million — a 92% decline since its IPO.