Bumble jumps by 26% as a result of the relationship firm plans to ax 30% of the workforce
Dana Point, California -September 27: Whitney Wolfe Herd, founder and CEO von Bumble, speaks on stage during the 2023 code conference of Vox Media on the Ritz -Carlton, Laguna Niguel on September 27, 2023 in Dana Point, California. (Photo by Jerod Harris/Getty Images for Vox Media)
Jerod Harris | Getty Images Entertainment | Getty pictures
bumblebee The shares gathered by more than 26% on Wednesday, after the dating app had announced in a securities registration that it should reduce 30% of its workforce or about 240 roles.
The layoffs will run fees of 13 to 18 million US dollars for the company in the third and fourth quarter of this year. Management estimates that the reductions will help the company save 40 million US dollars annually.
A spokesman for the bumblebee told CNBC in a statement that the layoffs were “not made lightly”.
“Our focus is now on driving ahead in a way that strengthens our core business, continues to use our members effectively and positions us for future growth,” they wrote.
Bumble said the cuts were part of a new configuration of his “operating structure to optimize the execution for their strategic priorities”. The company plans to invest savings in new product and technology development.
The shares of the Dating App Company have dropped since their debut in public markets in 2021. After the end of Tuesday, the market value has dropped from $ 7.7 billion to around 538 million US dollars.
The founder Whitney Wolfe Herd, who resigned as CEO in early 2024, returned to the role at the beginning of this year.
Together with the job cuts, Bumble has updated his previously announced forecast for the current quarter.
The company now expects sales between $ 244 and 249 million and an adjusted profit before interest, taxes, depreciation and amortization between USD 88 million and $ 93 million.
That is $ 235 million to $ 243 million and $ 79 million to $ 84 million in adjusted EBITDA forecast in the amount of Bumble in the first quarter of the past month.
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