Bumble Inc (NASDAQ:BMBL) shares surged 25% in after-hours trading as the company announced it will lay off around 240 employees (about 30% of its global workforce) as part of an overhaul aimed at reviving growth and boosting efficiency.
The job cuts are expected to deliver $40 million in annual cost savings, which Bumble says will be redirected into developing its technology and core products.
The company said the changes reflect a realignment of its operating structure to better support long-term priorities.
The layoffs will extend into late 2025, with estimated restructuring costs of up to $18 million, mostly tied to severance.
CEO Whitney Wolfe Herd described the move as a difficult but necessary step as Bumble reaches a turning point.
Despite Wednesday’s rally, the stock remains down over 35% in the past year and nearly 92% below its 2021 IPO peak.