Match Group Plans 13% Workforce Cut Amid Revenue Changes

Match Group, the parent company of Tinder, Hinge, and OkCupid, announced it will cut 13% of its global workforce as part of a cost-cutting and business revamp strategy under new CEO Spencer Rascoff, who took over in February amid slowing user engagement and industry challenges. Despite a 3% year-over-year decline in first-quarter revenue to $831 million, the company beat Wall Street expectations and forecast second-quarter revenue between $850 million and $860 million, surpassing analyst estimates. To combat user disillusionment and inflationary pressures, Match is focusing on innovation, particularly through artificial intelligence features such as personalized discovery algorithms, a voice-based flirting practice tool called Game Game, and a popular double-date matching experience appealing primarily to Gen Z users. Match also reported an increase in revenue per paid user to $19.07 from $18.87 a year ago and has implemented new security measures that reduced bad actor reports by more than 15%. The layoffs represent the first major structural change under Rascoff and reflect ongoing industry headwinds, including weak demand from younger users with less discretionary income. Rival Bumble also faced revenue declines but met market expectations, highlighting broader challenges in the online dating sector.