The global dating app market is accelerating its efforts to improve its structure amid the double burden of slowing growth and user attrition. In particular, as the trend of Generation Z (born from the mid-1990s to the 2010s) moving away from dating apps intensifies, the industry is seen making adjustments in personnel restructuring and product strategies.
According to The Wall Street Journal (WSJ) on the 25th (local time), Bumble, the leading dating app in the United States, announced it would reduce its workforce by about 30%. This is estimated to involve over 240 employees.
Whitney Wolfe Herd, the CEO of Bumble, noted in a letter sent to employees that "the dating app industry has reached a turning point" and that "it is time to restructure the company to be more resilient, purpose-driven, and agile." Wolfe Herd, who resigned in 2023 after founding Bumble 10 years ago and returned to the position in March, has been pursuing operational efficiency with the goal of creating "an organization as agile as a startup."
The situation at Bumble's competitor Match Group is similar. Match Group, which operates several dating apps including Tinder and Hinge, appointed Spencer Rascoff, the former CEO of Zillow, the number one real estate platform in the U.S., as its new head in February, and in May, it reduced its workforce by about 325 employees, or 13% of its total workforce. In particular, the reduction of 20% in managerial positions has been seen as strengthening the horizontal organizational structure. Match Group's strategy is to enhance business execution capabilities by establishing a product-centered small team system.
The aggressive restructuring in the industry is driven by the departure of core customer segments. While the number of dating app users surged in the early 2020s during the peak of COVID-19, assessments suggest there were relatively few cases that led to satisfactory consumer experiences. As the actual success rate of dating did not increase compared to the number of users, the industry faced a phase of slowing growth.
CEO Wolfe Herd pointed out that "dating apps do not simply improve in quality as the number of users increases, like social media (SNS)," stating that "excessive users can lead to an increase in fake accounts, lower matching quality, and user fatigue."
In response, the industry is focusing on designing new consumer experiences beyond simple couple matching functions. Match Group's flagship app Tinder is attempting to shift its image from that of "an app centered on casual encounters" to a more friendly and everyday image, such as through the introduction of a "double date coordination feature with friends."
The industry is also focusing on reorganizing into 'elite' team units to strengthen business execution capabilities. Accelerating business processes through quick decision-making to activate new product launches is a challenge for the industry. CEO Rascoff explained, "The smaller the team, the more autonomy and responsibility each employee has, which enables them to exert greater influence," noting that "this is not merely about increasing workload, but a strategic redefinition of roles."
Experts analyze that the success of dating apps in the future ultimately depends on the provision of "high-quality matching experiences." CEO Rascoff emphasized that "Tinder is akin to renovating an old bar," and that "it needs to provide a more flexible and comfortable experience for younger users."
An industry insider told WSJ in an interview that "the industry has focused on rapid growth and large-scale subscriber acquisition, but the trend is now shifting toward securing brand trust and user loyalty."