Tinder parent company cuts jobs as subscriber numbers slump

Match Group Inc, the company that owns Tinder, is planning to reduce its workforce by 6% due to a significant drop in the number of users who are paying for its popular dating app. This decision comes as Tinder has reported an 8% decrease in paying subscribers. Match Group also owns other dating platforms such as Hinge, Plenty of Fish, and OKCupid. The company has announced that it will be shutting down its live-streaming app, Hakuna, and will also remove live-streaming features from some of its dating applications. Despite being the leading dating app globally, Tinder has experienced a decline in paying users for several consecutive quarters. However, the company noted that the latest decline in subscribers is an improvement compared to the previous quarter, which saw a 9% drop. In a letter to shareholders, Match Group acknowledged the growing competition from rival dating apps like Bumble, which has reported an increase in its paying user base. Investment director Russ Mould from AJ Bell commented on the situation, stating that even though Match Group has some of the most recognized brands in the dating industry, it is facing fierce competition. He emphasized that the company needs to innovate and come up with new strategies to attract more users. Investors are urging Match Group to enhance its performance and provide better value for shareholders, especially since the company's stock price has plummeted over 60% from its peak in 2021. In their communication to shareholders, Match Group explained that Tinder's previous growth was driven by its engaging user experience, particularly the convenience of swiping left or right to find potential matches. However, they have observed a shift in user preferences, with many seeking a more relaxed and authentic experience that fosters genuine connections. The company plans to test new, lower-pressure methods for users to discover matches in the upcoming quarters, including options for using Tinder with friends. Recently, Tinder has introduced new features aimed at enhancing user interactions, such as AI tools that assist users in selecting the best images for their profiles. Mr. Mould also pointed out that the slower decline in Tinder's paying users, along with the growth of Hinge, offers a glimmer of hope for Match Group. Hinge, which is designed to be deleted after finding a serious relationship, has seen a sharp increase in its paying user base, with revenues rising by 48% compared to the same period last year. In contrast, Tinder's direct revenue growth was only 1% during the same timeframe. Following the release of its results, Match Group's share price experienced a nearly 10% increase in after-hours trading. The company is interested in hearing from users who have stopped using or paying for dating apps, as they seek to understand the changing preferences in the dating landscape.