Are dating apps becoming dinosaurs?

Bumble announced on Tuesday that it would cut over 30% of its total global workforce (over 350 employees) during its fourth quarter 2023 and full year 2023 earnings report.

The change comes as Gen Z begins go away from dating apps. A 2023 Statista survey showed that millennials in the US make up 61% of dating app users while Gen Z makes up just 26% of users.

Still, Bumble had a strong fourth quarter, with revenue coming in at $273.6 million, up about $30 million from the same time last year.

“We are taking important and decisive actions that ensure our customers remain at the center of everything we do as we relaunch the Bumble app, transform our organization and accelerate our product roadmap,” said Lidiane Jones, CEO of Bumble Inc. company release. “We believe these actions will strengthen our core capabilities and enable us to continue to deliver new and engaging user experiences that create healthy and equitable relationships.”

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The company is estimated to spend between $20 million and $25 million on severance, benefits and other costs for the employees who have been let go.

Bumble isn't the first in the dating app category to embark on mass layoffs.

Last year, rival Tinder announced it would to be cut 8% of its total global workforce, mainly in the recruitment sector.

Bumble was founded by Whitney Wolfe Herd in 2014 in an attempt to be a female-focused dating app where women are asked to initiate conversation after a match is made. The company officially went public in 2021.

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In November 2023, Wolfe Herd was replaced by former Slack CEO Lidiane Jones.

Bumble exceeded $1 billion in total revenue by 2023, up 16.4% from a year ago. company was down up 53% year over year as of Thursday afternoon.