The dating app Bumble plans to layoff 350 staff, about 30 % of their workforce, in their 2023 yearly report.
CEO Lidiane Jones announced a restructure to change user experiences.
This restructure aims to deliver “new and engaging user experiences”. According to Bumble’s yearly report, the motive behind the layoffs was to “drive operational leverage”.
Despite sky-high profits Bumble is suffering from losses. The dating app suffered a $32 million (£25 million) but made made $273.6 million (£216.5 million) in their final quarter. Because of this forecast of low growth and news of layoffs, its stock value has suffered. The stock was valued at $13.12 on the 23rd of February, but has since dropped to $11.45.
Lidiane Jones plans to implement more AI and features that hope to appeal to younger users. Bumble’s need of gaining “operational leverage” may be related to Gen Z’s lack of participation in dating apps.
Gen Z, those born between 1997 and 2012, are reportedly using dating apps less than other generations. Millennials make up 61% of users, whereas, Gen Z are only 26%.
A Changing Dating World
Dating apps seem to be losing their popularity for a number of reasons. From high-priced premium options, a fear of rejection and people focusing more on themselves. Singlehood is becoming increasingly popular. In the UK, 37.9% of adults had never married when surveyed in 2021. According to a BBC survey.
In a study on the dating app, Hinge, over half of users feared rejection; and so stayed away from serious dating or seeking a relationship.
Gen Z especially are focusing more on careers, self-care and nurturing friendships. They are also looking for more authentic and human connections. Which are harder to find on dating apps, when they have become to commercialised in recent years.
Some studies have reported that over 70% of Gen Z participants were single and not looking for a relationship. Citing careers, friendships and saving money they would have spent on dates.
As the dating world is forecast to move away from online websites and apps, could further layoffs on other platforms follow?
Featured image: Bumble.com
First year journalism student. From Aboyne, Aberdeenshire but lived in Doha for eight years.
