Tinder owner Match Group will cut 200 jobs, or eight percent of its workforce, as users reduce their spending on its dating service.
The layoffs will mainly hit the company’s recruiting teams.
The online dating service has already laid off part of its US workforce and started cutting staff in other countries.
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The company blamed a difficult economy, a strong dollar, and “significant” poor product performance at Tinder, in its quarterly revenue forecast.
Its Hinge app was also impacted by product delays due to tight competition from its rival, Bumble.
Match spent around $3 million on severance and related costs in the fourth quarter, and it expects to spend another $6 million in 2023.
Tinder said the moves would help increase profit margins in the second half of the year.
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Match joins a slew of Big Tech companies, from Microsoft to Amazon, to shrink their workforce as recession fears push companies to reduce expenses.
CFRA Research analyst Angelo Zino said: “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.”
Match, which focuses mainly on word-of-mouth advertising, said Tinder would roll out its global marketing campaign to boost its brand image.
Source: Reuters
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