Tinder owner to lay off 8% of its staff as growth falters
Adds comment from Match Group and background, updates shares
By Vansh Agarwal and Shreyaa Narayanan
Feb 1 (Reuters) -Match Group Inc MTCH.O on Wednesday joined a growing list of U.S. companies that are cutting jobs to rein in costs after it announced plans to lay off about 8% of its workforce, or about 200 employees, as spending on its datingapps slows.
The company gave a lackluster quarterly revenue forecast a day earlier thatit blamed on a tough economy, a strong dollar and "significant"poor product execution at Tinder. Product delays have also hit its Hinge app at a time when competition is rising from rival Bumble Inc BMBL.O.
The job cuts were mainly in areas such as recruiting, the company said in an email. The cuts have already taken place in the United States and are being implemented inother countries.
Match incurred about $3 million in severance and similar costs during the fourth quarter and said it was expecting additionalcosts of about$6 million in 2023. It said the moves would helpimprove margins in the second half of the year.
Shares of Texas-based Match were down 7.7%.
The layoffs come as othertech firms from Microsoft Corp MSFT.O to Amazon.com Inc AMZN.O shed tens of thousands of jobs to brace for a possible recession.
"In addition to the cuts, we expect Match to place greater emphasis on marketing its Tinder and Hinge brands, core areas of growth for 2023," CFRA Research analystAngelo Zino said.
Match, which has primarily relied on word-of-mouth advertising, said Tinder will be launching its first global marketing campaign in the current quarter to improve brand perception.
It forecast first-quarter revenue between $790 million and $800 million, lower than analysts' estimates of $817.3 million, according to Refinitiv data. The company also reported its first-ever quarterly revenue decline.
Match Group posts first-ever decline in quarterly revenuehttps://tmsnrt.rs/3YceVsv
Reporting by Vansh Agarwal and Shreyaa Narayanan in Bengaluru; Editing by Vinay Dwivedi and Anil D'Silva
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