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Investing.com -- Bumble (NASDAQ:BMBL) stock rose 13% after the dating app company announced plans to reduce its global workforce by approximately 240 roles, representing about 30% of its employees.
The company disclosed in a regulatory filing that its Board of Directors approved the workforce reduction on June 23, 2025, as part of an effort to "realign its operating structure to optimize execution on its strategic priorities." Bumble expects to incur non-recurring charges of approximately $13 million to $18 million, primarily consisting of employee severance, benefits, and related costs.
These charges are expected to be recorded mainly in the third and fourth quarters of 2025, with substantially all resulting in future cash outlays. The company noted that the workforce reduction process may extend beyond the fourth quarter in certain countries due to local consultation requirements.
Bumble anticipates achieving up to $40 million in annual cost savings from the workforce reduction. The company plans to reinvest "the substantial majority" of these savings into strategic initiatives, including product and technology development.
In conjunction with the announcement, Bumble updated its financial outlook for the second quarter of 2025, now expecting total revenue between $244 million and $249 million, and adjusted EBITDA between $88 million and $93 million. This compares to its prior forecast of revenue of $235 million to $243 million in revenue and adjusted EBITDA between $79 million and $84 million.
In a message to employees, Founder and CEO Whitney Wolfe Herd described the decision as difficult but necessary, stating that "Bumble, like the online dating industry itself, is at an inflection point." She emphasized the company’s intention to return to a "start-up mentality" with a focus on "core product innovation" and becoming "a faster, more decisive, and more agile organization."