Bumble expects the reduction in headcount to generate up to $40 million in annual cost savings but estimates that the restructuring will result in $13 million to $18 million in non-recurring charges.

The exterior of Bumble Headquarters on July 15, 2024 in Austin, Texas. (Photo by Brandon Bell/Getty Images)

Prabhjote Gill·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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Shares of popular dating app Bumble (BMBL) soared early morning on Wednesday after the company raised its second-quarter financial outlook and announced it would slash around 30% of its workforce.

Bumble’s stock popped as much as 20% after the opening bell as retail sentiment on Stocktwits ticked higher into ‘bullish’ territory from ‘neutral’ a day ago.

The company said it now expects revenue to be between $244 million and $249 million for the second quarter (Q2), up from an earlier estimate of between $235 million and $243 million. It expects earnings before interest, tax, depreciation, and amortization (EBITDA) to be between $88 million and $93 million.

The company also announced that it is eliminating 240 roles across its organization to streamline its operations and focus on its key strategic priorities.

Whitney Wolfe Herd, founder and CEO of Bumble, said the layoffs were undertaken to make the company resilient and ready for the next decade.

“We’ve reset our strategy, and are going back to a start-up mentality – rooted in an ownership mindset and team structures designed for faster, more meaningful execution,” Herd said.

In a regulatory filing with the Securities and Exchange Commission (SEC), the company said its board of directors approved the layoffs on June 23 as part of a broader strategic alignment.

Bumble expects the reduction in headcount to generate up to $40 million in annual cost savings, but estimates that the restructuring will result in $13 million to $18 million in non-recurring charges resulting from paying out severance, employee benefits, and other associated costs.

It said that most of the charges are likely to reflect on the balance sheet during the third and fourth quarters of 2025.

“Substantially all of these charges are expected to result in future cash outlays,” Bumble stated in the filing, noting that the timing of the job cuts may be extended in certain countries due to local labor laws and consultation requirements.

The news comes as the online dating landscape has gotten more competitive with singles reportedly turning to high-end matchmaking services, which require users to pay a premium, rather than free dating apps.

According to a report by Bloomberg, paying users at Match Group’s (MTCH) Tinder have declined for eight consecutive quarters, and the business isn’t expected to return to revenue growth until 2027.

Earlier this year, Herd returned to her role as CEO, replacing Lidiane Jones. Herd is looking to refocus Bumble’s vision beyond just dating, aiming to transform it into a platform of self-improvement and meaningful relationships.

The company has struggled to regain investor confidence following a volatile year for tech and app-based platforms, with its stock down more than 35% year-to-date and nearly 50% in the last months.

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