In a shocking move, Bumble is trimming its workforce by nearly a third, as the popular dating app grapples with stagnant growth and increasingly wary investors.

CEO Whitney Wolfe Herd addressed the situation in an internal memo, acknowledging the urgent need for the company to evolve amid what she describes as a critical "inflection point" in the dating industry. She expressed, "We must take bold steps to restructure our organization, ensuring we build a resilient and intentional company ready for the next decade."

After stepping back from her role last year, Wolfe Herd returned in March with hopes of revitalizing Bumble's fortunes. The app gained fame for its unique approach, allowing only women to initiate conversations with matches. However, in a bid to reignite growth, Bumble adjusted these rules last year, permitting equal messaging opportunities.

At its peak in 2021, Bumble debuted on the stock exchange with a staggering valuation exceeding $13 billion, making Wolfe Herd the youngest self-made female billionaire. Unfortunately, the tides have turned dramatically—Bumble's stock has plummeted to under $7, erasing nearly all initial value.

The dating sector has faced a tough sell, struggling to convince users to pay for premium services. Bumble's latest figures reveal 4.1 million paying users, an 11% year-over-year uptick. However, the company's revenue growth was nearly flat at under 2%, compounded by losses.

To combat these issues, Bumble is cutting 240 jobs, anticipated to save around $40 million annually. These funds will be redirected toward technology development and innovation, aiming to revitalize the company's offerings.

Bumble isn’t alone in this turbulent landscape. Competitors like Match Group, which owns Tinder, have also announced cuts, trimming 13% of their workforce last month.

Interestingly, following the announcement of these job cuts, shares of Bumble saw a surprising rebound, climbing 20%. As the dating app landscape continues to shift, it's a critical moment for Bumble to find its footing.