Generation Z is stopping using dating apps and it seems like Bumble is suffering. In a surprising turn that reflects the fluctuating dynamics of the technology sector, Bumble announced a significant cut to its workforce, laying off 30% of its employees in an effort to restructure and realign its operating model. with future strategic priorities.
The decision affects about 350 Bumble employees and is part of a broader trend of labor adjustments in the technology sector, where giants such as Alphabet, Amazon, and Sony, among others, have also made significant layoffs.
This move is the first big step for CEO Lidiane Jones since her appointment in January, following her time at Slack Technologies.
Generation Z moves away from Bumble and the like
Although Bumble saw revenue growth in the last quarter of the year, according to TradingView, with 273.6 million dollars, the company faced a performance below expectations with a net loss of 32 million. This financial scenario has driven the implementation of cost reduction measures to improve the operational efficiency and effectiveness of the company’s business model.
Recently the magazine time revealed in a report that figures that 61% of dating app users are people between 30 and 49 years old (millennials). On the contrary, Generation Z represents only 26% of the users of these platforms.
Future Prospects of Bumble
Following the announcement, Bumble shares saw a drop of more than 8% in after-market trading.
This work adjustment is interpreted as an effort to optimize and scale operations, which is essential to manage server loads, database queries, application security and continuous improvements, critical aspects for technology companies with millions of users. .
Despite the challenges, Bumble plans to relaunch its eponymous app and revamp its premium plus offering, aiming to attract a broader user base and improve engagement on the platform. These actions are part of a larger effort to accelerate the company’s product roadmap and strengthen its core capabilities.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.