Match Group Inc, the parent company of popular dating app Tinder, is set to cut 6% of its global workforce as it faces a decline in paying users. The company, which also owns Hinge, Plenty of Fish, and OKCupid, has reported an 8% fall in the number of paying Tinder users, leading to job cuts primarily from shutting down its live-streaming app Hakuna and removing live-streaming features from some of its dating apps.
Despite being the world’s most popular dating app, Tinder has seen declines in subscriber numbers for several consecutive quarters, prompting the company to take action. Match Group acknowledged the challenges it faces from competitors like Bumble, which reported an increase in paying users last quarter.
Investment director Russ Mould noted that Match Group has been struggling with intense competition and a lack of innovation, leading activists to pressure the company to come up with new ideas to drive user numbers. Some investors have called on Match Group to improve its performance and deliver more value for shareholders, as the company’s stock price has dropped more than 60% from its 2021 peak.
In response to changing user preferences, Match Group plans to test new, lower-pressure forms of discovery on Tinder in the coming quarters, including ways for users to interact with friends on the app. Despite the challenges, there is a glimmer of hope for the company, with the growth of Hinge and an increase in paying users for other apps in its portfolio.
Match Group’s share price rose nearly 10% in after-hours trading following the announcement of its workforce cuts and subscriber decline. The company remains optimistic about its future prospects as it adapts to meet the evolving needs of the dating app market.
