Bumble cut 30% of its workforce—the magnitude of which JPMorgan says ‘comes as a surprise’

But JPMorgan analysts wrote in a note on Wednesday that the size of workers’ layoffs (which reaches about 240 jobs) “comes as a surprise” because the company has already announced $ 15 million in operations in the second half of the year, although the administration has guaranteed that there are likely to be more discounts. The shares of the dating company increased by more than 20 % on Wednesday after the news.

Although the costs of baits and employees are reduced, they return most of the savings to work, according to JPMorgan, which can be used for the product, technology or other strategic fields. The news is also surprising because this leaves the baits with a small space for future discounts.

A spokesman said luck.

“We are very grateful for the contributions of every affected employee,” said Bumble. “Our focus is now on moving forward in a way that strengthens our basic actions, continues to serve our members effectively, and puts us in the future growth.”

Dating applications die

Like many other dating applications, Bumble was struggling to keep users and acquire them. General Zires and thousands of years have begun to avoid applications, which one considers “the land of the cookie”. Many common complaints with dating applications include just a feeling as a number, lack of luck in finding the right match, and less chances to meet a partner in real life.

During the first quarter, the bird’s revenues decreased by 8 % and the average revenue of each user is 7.3 %. Bumble USSHIP reached its peak in 58 million users in 2023, but it decreased to 50 million users in 2024. In late March, Bumble Whitney Wolfe returned as an executive head after a 14 -month stop. During her break, she worked as the Chairman of the Board of Directors while the company’s share price has turned, and young generations had separated from dating applications, and the reputation of the industry deteriorated.

Even Wolf Hurd admitted to dating applications.

“They are rooted in rejection and judgment,” said Wolf Hurd luckThe most powerful editor of women Emma Hinchelv. “You judge people, and they judge you. You are rejected, and you refuse. These are not a healthy dynamics.”

In turn, I told Wolf Hurd as well luck It plans to repair the company and the application, a promise that has been partially fulfilled on the news of workers’ discharge.

The future of the tin

JPMorgan said Bumble also raised its revenue expectations on Wednesday, which is another shock to the company. According to the 8-K report from Wednesday, Bumble said it expects revenues ranging from $ 244 million and 249 million dollars for the second quarter. This increases from the previous expectations of the company of $ 235 million to 243 million dollars.

JPMorgan analysts have warned that the update of Bumble’s revenues is not a sign of online dating trends, and they said they expect the company’s revenues to decrease on an annual basis during the second half of the year.

However, JPMorgan analysts said they “encouraged by the financial discipline that Whitney showed” during her second term as an executive head, but “is still standing in the formulation of weight with industry trends that are still challenging, and a long distance to return the Bumple application to growth.”