But JPMorgan analysts wrote in a Wednesday note the magnitude of the layoffs (which amount to about 240 jobs) “comes as a surprise” because the company had already announced $15 million in operating cuts in the second half of the year, even though management had implied there were likely more cuts to come. Shares of the dating app company soared more than 20% on Wednesday following the news.

Although Bumble cut costs and staff, they are putting most of the savings back into the business, according to JPMorgan, which could be used for product, tech, or other strategic areas. The news also is surprising because that leaves Bumble with little room to make future cuts. 

The decision about the layoffs was “not made lightly,” a Bumble spokesperson told Fortune. 

“We are deeply grateful for the contributions of every employee impacted,” the Bumble spokesperson said. “Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth.”

Dating apps are dying

Like many other dating apps, Bumble has been struggling to retain and acquire users. Gen Zers and millennials have started to shun the apps, which one regards as a “wasteland.” Many of the common complaints with dating apps include just feeling like a number, a lack of luck in finding the right match, and fewer opportunities to meet a partner in real life. 

During Q1, Bumble revenue was down 8% and its average revenue per paying user was down 7.3%. Bumble usership peaked at 58 million users in 2023, but dropped to 50 million in 2024. In late March, Bumble founder Whitney Wolfe Herd returned as CEO after a 14-month hiatus. During her break, she served as board chair while the company’s share price nosedived, younger generations broke up with dating apps, and the industry’s reputation deteriorated.

Even Wolfe Herd admitted the pitfalls of dating apps.

“They are rooted in rejection and judgment,” Wolfe Herd told Fortune’s Most Powerful Women Editor Emma Hinchliffe. “You are judging people, and they are judging you. You’re being rejected, and you’re rejecting. These are not healthy dynamics.”

In turn, Wolfe Herd also told Fortune she plans to overhaul the company and app, a promise partially fulfilled upon the news of layoffs.

The future of Bumble

Bumble also raised its revenue forecast Wednesday, another shocker for the business, JPMorgan said. According to an 8-K filing from Wednesday, Bumble said it expects revenue between $244 million and $249 million for Q2. That’s up from the company’s previous forecast of $235 million to $243 million. 

JPMorgan analysts warned Bumble’s revenue update isn’t a sign online dating trends are improving, and said they expect the company’s year-over-year revenue declines to continue during the second half of the year. 

Still, JPMorgan analysts said they’re “encouraged by the financial discipline Whitney has shown” during her second tenure as CEO, but “remain Underweight-rated with industry trends still challenged and a long way to go to return Bumble app to growth.”