Match Group cuts in its workforce, the online “dating” has broken down

(Boursier.com)-Dirty time for online meetings, between the disenchantment of the youngest users, absence of new innovative features and persistent inflation in the United States. match Group, the owner of Tinder, Hinge or OK Cupid, will fire one in five manager as part of a 13% reduction in his workforce. In total, 325 positions would be affected on the 2,500 full time declared in the company’s 2024 annual report. The Action Match fell 3.5% to Wall Street.

These layoffs have been the first major structural change at Match since the new boss took the reins in February and was responsible for combating the slowdown in user engagement. Spencer Rascoff said Thursday that these discounts would allow faster decision -making, and the grouping of key functions such as customer service, content moderation, advertising and international marketing teams.

Decrease in the number of users

Match Group recorded 14.2 million paid users during the quarter, a more marked drop than expected by analysts. The group also finds a drop in income related to purchases à la carte of Tinder users in recent weeks.

For the closed quarter on March 31, the company’s turnover decreased by $ 3% to $ 831 million, exceeding estimates of $ 827.5 million, partly thanks to favorable exchange rates. Its rival Bumble announced on Wednesday a drop of more than 7% of its turnover in the first quarter, but reached market estimates.

To win back users, a match also tests new features in order to strengthen its security and verification programs – the company has also noted a reduction of more than 15% of the reports of malicious actors. Its Tinder application has launched a double meeting functionality (allowing to team up with a friend) on a few European markets and plans to deploy it soon in other regions of Asia and Latin America, with a launch in the United States later this year.