Bumble cuts staff as Gen Z turns away from dating apps

To tackle a decrease in demand, largely among younger demographics, the dating app announced that it would be laying off a third of its workforce and using the money it saved on salaries to reinvest in areas of the business that would "drive long-term growth."

"Today, we announced solid full-year results and a bold plan to transform Bumble and lead the company to its next phase of growth and innovation," CEO Lidiane Jones said in a press release.

"We are taking significant and decisive actions that ensure our customers remain at the center of everything we do as we relaunch Bumble App, transform our organization and accelerate our product roadmap. We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships."

The elimination of 350 roles will cost Bumble between $20 and $25 million in severance packages, benefits, and related payments, however, per Bloomberg, CFO Anuradha Subramanian noted that as a result the company will save around $55 million per year.

Around $15 million of that, she added, will be "selectively" reinvested in "areas of product, engineering, safety and brand that will help drive long-term growth."

Jones, who took over as CEO in January, said the revamp of the product will target younger potential users, a demographic that the dating app industry has been struggling to attract interest from as of late.

As the Daily Mail reports, a recent survey conducted by Axios and the Generation Lab found that 79 percent of students at the college and graduate levels in the United States do not use dating apps, with many opting to find partners via more traditional methods.