Match Group Inc, the parent company of Tinder, is set to cut 6% of its global workforce due to a decline in paying users for its most popular dating app. The company, which also owns Hinge, Plenty of Fish, and OKCupid, reported an 8% decrease in Tinder’s paying users. Job cuts will mainly result from shutting down its live-streaming app Hakuna and removing live-streaming features from some dating apps.
Despite consecutive declines in Tinder subscriber numbers, the recent dip was less severe than anticipated. In a letter to shareholders, Match Group described the latest 8% fall as an improvement over the previous quarter’s 9% decline. However, competition from rival apps like Bumble, which reported an increase in paying users, remains strong.
Russ Mould, investment director at AJ Bell, noted that Match Group struggles with intense competition and a lack of innovation. Investors are pressuring the company to develop new ideas to boost user numbers. Match Group’s stock has fallen more than 60% from its 2021 peak, prompting calls for improved performance and shareholder value.
Match Group acknowledged that users’ preferences have shifted, with a desire for a lower-pressure experience and greater authenticity. The company plans to test new discovery features on Tinder, including ways for users to engage with friends on the app. Recent updates include allowing friends and family to play matchmaker and using AI to help users select profile images.
Tinder’s slow decline in paying users and Hinge’s growth offer some optimism for Match Group. Hinge’s revenue increased by 48% compared to the same period in 2023, while Tinder’s direct revenue grew by just 1%. Match Group’s share price rose nearly 10% in after-hours trading following the results announcement.