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Bumble chief executive Whitney Wolfe Herd has criticised staff for “freaking out” after announcing the company would eliminate more than 160 roles in London, warning drastic cost-cutting measures were needed as “dating apps are feeling like a thing of the past”.
The online dating group’s founder, who returned as chief executive in March, made the remarks while telling staff this week that its British office would bear the brunt of 240 planned job cuts that represents 30 per cent of its global workforce.
According to people familiar with a company-wide call, Wolfe Herd said she was “worried” that Bumble — which also owns dating app Badoo — may collapse by next year if measures were not taken to safeguard the business. A person with knowledge of the move also said that staff globally had been offered voluntary redundancy.
Wolfe Herd said its “centre of gravity” would move to the US where the “talent pool is right now”. She said that “London’s not the first choice, that’s the frank reality”.
The move represents a strategic change for the online dating company, with 70 per cent of the staff currently based in the UK.
Those with knowledge of the video call said that Wolfe Herd turned critical when staff responded with a series of thumbs down emojis.
“I see a lot of freaking out emojis, y’all need to calm down,” she said. “This is being taken out of context. I like London and I think everyone is overreacting to this candidly . . . Everyone’s going to have to be adults in dealing with this.” She also suggested all staff take the rest of the week off following the call.
Bumble’s market capitalisation has shrunk almost 30 per cent over the past year to about $700mn, down from around $13bn when the company went public in 2021, with investors concerned with its falling revenues.
The group — which has ditched its signature feature that women must message men first — is one of several dating apps including industry leader Tinder, to steadily lose users in recent years.
Industry surveys have shown that many Gen Z users were complaining of dating “burnout”, while women have reported concerns about receiving unsolicited material and violent threats while using the online dating services.
On the staff call, Herd said that although Bumble would not close its UK office entirely, it could not continue to be “London first”, adding that global expansion “hadn’t delivered” for the company.
She added the group would open a new office in Silicon Valley to capitalise on the artificial intelligence talent in the San Francisco Bay Area.
A spokesperson for Bumble said it has made some “very difficult decisions” over the past week to “better position the company for long-term growth and success.”
“While we continue to deepen our presence in the US, London remains a part of our global hub strategy. As we’ve consistently stated, we remain firmly committed to investing in our talented team there,” they added.
Bumble is set to announce a series of new products such as a photo and phone number verification system to attempt to convince users to stick with the service in the coming months, according to a person familiar with the company’s thinking.
“We are in a decline from a numbers standpoint,” said Wolfe Herd. “Dating apps are feeling like a thing of the past.”
