Tinder Layoffs: Dating Apps' Parent Firm Plans To Fire 6% Of Its Employees

Tinder Layoffs: The decision reportedly comes despite the company’s second-quarter revenue report, which showed a 4 per cent growth. During this period, Match Group generated about $864 mn in revenue

Tinder Layoffs: The online dating industry, including companies like Match Group and Bumble, has faced pressure from a slowdown in user growth following the pandemic

Source : Tinder

Tinder Layoffs: Dating platform Tinder’s parent company, Match Group, announced on Tuesday that it will reduce its workforce by approximately 6 per cent as part of its plan to phase out live-streaming services on its dating apps. The firm's decision comes in response to pressure from activist investors advocating for changes, reported the news agency Reuters.

The decision reportedly comes despite the company’s second-quarter revenue report, which showed a 4 per cent growth. During this period, Match Group generated approximately $864 million in revenue. However, Tinder has continued to experience a decline in paying users, which may have influenced these strategic adjustments.

The online dating industry, including companies like Match Group and Bumble, has faced pressure from a slowdown in user growth following the pandemic. Additionally, delays in introducing new features and enhancing the user experience have influenced these challenges.

"While Tinder Y/Y payer growth remains challenged, the improved trends reported by management and that we observe in our data do suggest that user experience and brand perception improvements are contributing to sequential payer growth," M Science research analyst Chandler Willison told Reuters.

In the second quarter, the number of paid Tinder users dropped 8 per cent to 9.6 million, compared to a 9 per cent drop in the previous quarter.

This news follows a recent development in which activist investor Starboard Value acquired a 6.6 per cent stake in Match Group, urging the company to consider a sale if it cannot revitalise its operations. Additionally, Elliott Investment Management and Anson Funds Management have been advocating for changes at Match Group throughout the year.

Globally, Tinder downloads decreased by 12 per cent, marking the fourth consecutive quarter of declining downloads, according to data from market intelligence firm Sensor Tower released on Monday, as per the report.

For the second quarter, Match Group reported a revenue jump of 4 per cent, reaching $864 million, surpassing analysts' average estimates of $856.4 million, as per LSEG data. However, the total number of paying users fell by 5 per cent to 14.8 million, continuing a trend of seven consecutive quarters of decline, states the report.