Match Group, the parent company of popular dating apps including Tinder, Hinge, and OkCupid, announced Thursday that it will lay off 13% of its global workforce as part of a cost-cutting and business revamp strategy under new CEO Spencer Rascoff.
Despite the restructuring, the Dallas-based company forecast second-quarter revenue that surpassed Wall Street expectations.
The move marks the first major shake-up under Rascoff, who stepped in as CEO in February amid slowing user engagement and growing competition in the online dating industry.
Shares of Match Group rose 2.7% in premarket trading following the announcement.
Match’s layoffs come at a time when dating apps face mounting pressure to re-engage a user base that has become increasingly disillusioned by repetitive swiping experiences, rising subscription prices, and inflationary pressures.
In response, Match has pivoted toward innovation and generational relevance. The company is doubling down on artificial intelligence, integrating AI-enabled features designed to help users improve their dating outcomes. These include personalized discovery algorithms and interactive tools like Game Game, a voice-based experience that lets users practice flirting with AI-generated dates.
One standout feature is “double date,” a new matching experience where users pair up with friends to meet other duos. CEO Rascoff noted that the feature is gaining traction with Gen Z, with 90% of double-date profiles coming from users under age 29.
Despite a 3% year-over-year decline in revenue to $831 million for the quarter ending March 31, Match still exceeded analyst estimates of $827.5 million. The company’s revenue per paid user ticked up slightly to $19.07 from $18.87 a year ago a modest but meaningful improvement amid industry headwinds.
What to know
Looking ahead, Match forecasts second-quarter revenue between $850 million and $860 million, comfortably above Wall Street’s consensus of $846.7 million, according to data from LSEG. The upbeat outlook signals investor confidence in the company’s retooling efforts under Rascoff’s leadership.
Match is also stepping up safety and verification features, a growing concern for users across all age groups. According to company data, recent upgrades to its identity verification system and reporting tools have led to a 15% reduction in reports of bad actors.
While Match is managing to outperform expectations, competitor Bumble reported a more than 7% revenue drop in its first-quarter earnings released Wednesday, although it still met market forecasts.
As the dating app industry recalibrates amid changing consumer habits and economic uncertainty, Match Group appears to be banking on innovation, AI, and a Gen-Z-focused strategy to find love and growth in a shifting digital landscape.
