Match Group, the owner of Tinder, will cut six percent of its headcount amid a decline in paid subscribers for its popular dating app.
The company, which owns Hinge, Plenty of Fish, and OKCupid, has reported an eight percent drop in paying Tinder users.
Job reductions will mainly come from shutting down the live-streaming app Hakuna and removing live-streaming features from some dating apps.
This latest downturn in Tinder subscribers follows several consecutive quarters of declines.
However, the decrease was less severe than some investors had expected.
In a letter to shareholders, Match Group described the latest subscriber drop as an “improvement” compared to a nine percent decline in the previous quarter.
“A lack of innovation seems to be a key bugbear and activists are putting pressure on the company to come up with some new ideas to drive up user numbers”
Tinder faces growing competition from rival apps like Bumble, which has reported an increase in paying users.
Russ Mould, investment director at AJ Bell, said: “Despite owning some of the best-known brands in the dating market, Match Group has been struggling with intense competition.
“A lack of innovation seems to be a key bugbear and activists are putting pressure on the company to come up with some new ideas to drive up user numbers.”
Activists are pressuring the company to generate new ideas to boost user numbers.
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Investors are urging Match Group to enhance performance and deliver greater value, as the company’s stock price remains down over 60 percent from its peak in 2021.
In its letter, the company said Tinder’s previous growth was fueled by its “engaging and fun user experience,” particularly the swiping feature.
However, user preferences have shifted towards a more authentic and low-pressure experience.
Match Group plans to test new features, including ways for users to interact with friends while using Tinder, in response to changing user expectations.
Recent updates include options for friends and family to help users make matches and AI features to optimize profile images.
