Although Bumble cut costs and staff, they are putting most of the savings back into the business, according to JPMorgan, which could be used for product, tech, or other strategic areas. The news also is surprising because that leaves Bumble with little room to make future cuts.
The decision about the layoffs was “not made lightly,” a Bumble spokesperson told Fortune.
“We are deeply grateful for the contributions of every employee impacted,” the Bumble spokesperson said. “Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth.”
Like many other dating apps, Bumble has been struggling to retain and acquire users. Gen Zers and millennials have started to shun the apps, which one regards as a “wasteland.” Many of the common complaints with dating apps include just feeling like a number, a lack of luck in finding the right match, and fewer opportunities to meet a partner in real life.
Even Wolfe Herd admitted the pitfalls of dating apps.
In turn, Wolfe Herd also told Fortune she plans to overhaul the company and app, a promise partially fulfilled upon the news of layoffs.
JPMorgan analysts warned Bumble’s revenue update isn’t a sign online dating trends are improving, and said they expect the company’s year-over-year revenue declines to continue during the second half of the year.
Still, JPMorgan analysts said they’re “encouraged by the financial discipline Whitney has shown” during her second tenure as CEO, but “remain Underweight-rated with industry trends still challenged and a long way to go to return Bumble app to growth.”
