(Reuters) -Bumble said on Tuesday it would lay off about 350 roles, a first major step taken by new CEO Lidiane Jones, after the online dating company forecast disappointing first-quarter revenue as it grapples with a slowdown in user spending.
Shares of the Austin, Texas-based company, which offers dating apps such as Bumble, Badoo, and Fruitz, fell more than 7% in extended trading.
Bumble expects to incur about $20 million to $25 million as one-time charges related to the job cuts, the majority of which will be recognized in the first two quarters of 2024.
The company competes with larger rival Match Group, which is aggressively advertising and marketing to target younger users, at a time sticky inflation and high borrowing costs are affecting non-essential purchases.
In 2023, dating app operators remained under pressure, with Match’s stock dropping about 12% and Bumble falling about 30% on concerns of slowing growth.
Bumble, which operates its eponymous dating app, expects current-quarter revenue between $262 million and $268 million, compared with analysts’ average estimate of $277.9 million, according to LSEG data.
Total paying users across Bumble’s apps increased to 4 million in the fourth quarter ended Dec. 31, from 3.4 million a year earlier.
The company posted fourth-quarter revenue of $273.6 million, missing analysts’ estimates of $275.3 million.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)
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