Bumble to lay off 30% of workforce as it moves to slash costs

Bumble volition laic disconnected astir 30% of its workforce, oregon 240 employees, according to a regulatory filing filed by the online dating institution connected Wednesday. 

The jobs cuts travel arsenic the institution moves to trim costs and refocus connected increasing its lawsuit base. Bumble estimates the layoffs, which are slated to instrumentality spot successful the 2nd fractional of the year, volition prevention $40 million. The Texas-based institution said it volition reinvest astir of that wealth into "product and exertion development." 

In announcing the determination to unit connected Wednesday, Bumble CEO Whitney Wolfe Herd, who besides co-founded Tinder, said the online dating concern arsenic is astatine an "inflection point." 

"The world is, we request to instrumentality decisive enactment to restructure to physique a institution that's resilient, intentional and acceptable for the adjacent decade," she wrote successful an email to Bumble employees. 

In a connection to CBS News, a Bumble spokesperson said the determination to trim the company's workforce is successful enactment with the company's strategical goals. 

"Our absorption present is connected moving guardant successful a mode that strengthens our halfway business, continues to service our members efficaciously and positions america for aboriginal growth," the spokesperson said.

Bumble said successful its securities filing that it volition incur $13 cardinal to $18 cardinal successful non-recurring charges for severance and different benefits paid retired to impacted employees. Shares of the online dating institution were up 21% successful midday trading.

During a institution net telephone successful May, Herd acknowledged Bumble had mislaid traction with customers and said it was focusing connected providing users with amended matches. 

"We are accelerating our efforts to amended our subordinate basal and amusement members a much thoughtful enactment of high-quality applicable profile," Herd said astatine the time. 

"As we execute connected our plans, we are precise focused connected gathering a sustainable gross exemplary with a steadfast paying subordinate base," she added.

• Tinder
• Whitney Wolfe Herd