Match Group, the parent company of platforms such as Tinder, OkCupid and Meetic, announced that it is cutting 8% of its global workforce, approximately 200 workers. Group CFO Gary Swidler said:
We expect to reduce our overall workforce by approximately 8%.
Prior to the announcement, the company presented a quarterly revenue forecast with negative results that it attributed to the tough economy, the strong dollar and the "significant" poor product execution of Tinder. The high popularity of its main competitor, the dating app Bumble, may also have played a role in its poor financial performance.
The job cuts were mainly in recruitment areas and employees have already been let go in the United States. According to the company, layoffs are being implemented in other countries as well.
Drop in the stock market
The company recorded the first quarterly decline in revenues in its history. In 2022, Match Group posted a net profit of $361.9 million, (up 30.3% from 2021). The company's total revenues for the full year amounted to $3.2 billion (6.9% more than the previous year). However, the company's costs amounted to $2.7 billion (25.5% higher than in 2021).
In the last quarter of 2022, between October and December, the company posted a net profit of $84.5 million (compared to a loss of $168.6 million in the same period of 2021), while revenue fell 2.5% to $786 million.
By the first quarter of 2023, the group expects to achieve a revenue range of between $790-$800 million, with an adjusted profit of between $250 million and $255 million. Its stock market shares fell 9% after the company's estimates fell below market consensus expectations of $817.3 million.