Quick overview

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Bumble (BMBL) announced it will lay off approximately 240 employees, or 30% of its global workforce. Following this announcement, the company’s shares rose by 12% in pre-market trading.

Bumble indicated that it expects to incur one-time charges of about $13 million to $18 million for employee severance, benefits, and related costs, primarily in the third and fourth quarters of 2025. The company is projected to save around $40 million from these cost reductions, which it plans to invest back into initiatives like technology and product development.

Additionally, Bumble raised its second-quarter revenue forecast to between $244 million and $249 million, up from the previous estimate of $235 million to $243 million.

Fruitz, a subsidiary of Bumble, is set to shut down by the end of the first half of this year. Bumble, the American company that acquired the French app for $75 million three years ago, made this unfortunate announcement during the fourth quarter and full-year 2024 results. Fruitz was Bumble’s first acquisition, intended to strengthen its presence in Europe, it didn’t achieve the desired success.

Launched in 2017 by Julian Kabab, Fabrice Bascoulergue, and Arnaud Ruols, the French app found traction in a highly competitive market. The concept allowed users to select a fruit—grape, watermelon, peach, or cherry based on the type of interaction.

Users would choose a cherry to find a soulmate or a peach for a one-night stand, clarifying their intentions. This approach resonated particularly well with Gen Z. The app gained popularity in several countries, including Canada, France, Belgium, the Netherlands, Switzerland, and Spain, amassing over 10 million users.