Tinder owner Match Group to cut 6% workforce

Match Group will let go about 6% of its staff as part of plans to discontinue live-streaming services on its dating apps, as activist investors push for changes, according to a Reuters report.

Shares jumped more than 8% in extended trading after the company also beat Wall Street estimates for second-quarter revenue as Tinder marked a smaller decline in paying users than in the prior quarter, the report mentioned.

Dating app operators such as Match and Bumble have remained under pressure from a post-pandemic slowdown in growth, with Match also facing delays in the launch of new features for key apps such as Tinder, as per the report.

”While Tinder Y/Y payer growth remains challenged, the improved trends reported by management and that we observe in our data do suggest that user experience and brand perception improvements are contributing to sequential payer growth,” M Science research analyst Chandler Willison said.

Paying Tinder users declined 8% to 9.6 million in the second quarter, compared with a 9% fall in the prior quarter.

Match expects third-quarter revenue to be between $895 million and $905 million, compared with estimates of $915.4 million.

Tinder downloads fell 12% globally, marking its fourth consecutive quarter of declining downloads, as per data.

Match’s second-quarter revenue grew 4% to $864 million, compared with analysts’ average estimates of $856.4 million, according to LSEG data.

Total paying users fell 5% to 14.8 million, the seventh straight quarter of decline.