Tinder's parent company, Match Group Inc, plans to cut 6% of its global workforce amid a continued slump in users paying for its most popular dating app.
The dating app giant, which also owns Hinge, Plenty of Fish and OKCupid, has revealed an 8% fall in the number of paying Tinder users.
It said job cuts would largely stem from shutting down its live-streaming app Hakuna and removing live-streaming features available in some of its dating apps.
Match has now reported declines in Tinder subscriber numbers for several consecutive quarters - though it remains the world's most popular dating app, and the latest dip was less than some investors anticipated.
The company said in a letter to shareholders on Tuesday that its latest fall in subscribers was an "improvement" on a 9% dip in the previous quarter.
Tinder is increasingly being challenged by rival dating apps such as Bumble, which reported an increase in its number of paying users last quarter.
“Despite owning some of the best-known brands in the dating market, Match Group has been struggling with intense competition," said Russ Mould, investment director at AJ Bell.
"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."
Some Match Group investors have called on the company to improve its performance and deliver more value for shareholders - for whom the company's stock price has been trading down at more than 60% on its 2021 peak.
Match Group told shareholders in its letter that Tinder's growth had previously been driven by its "engaging and fun user experience" - key to which has been the convenience of swiping left or right on potential matches.
But it said that what users want from dating apps has since changed.
"Sentiment has shifted as users seek a lower-pressure experience with greater authenticity that more easily delivers desired connections," it said.
"We expect Tinder to begin testing new lower pressure forms of discovery in the coming quarters, including more ways for users to use Tinder with friends."
Tinder has recently rolled out new ways for people to meet people on the app - including letting friends and family members play matchmaker - and artificial intelligence (AI) features helping users pick the best images to use on their profiles.
Meanwhile, Mr Mould added that Tinder's slowed decline in paying users, along with the growth of Hinge, presented a "glimmer of hope" for its parent company.
The number of people paying for the app - which Match says is "designed to be deleted" - has increased sharply, with the revenues it generates rising by 48% compared to the same period in 2023.
Tinder, comparatively, saw its direct revenue grow by just 1% across the same period.
Match Group's share price rose by nearly 10% in after-hours trading on Tuesday after reporting its results.
Latest Stories
-
Embrace ICT to fit in digital world – Ho NYA boss to youth
17 mins -
We don’t want armed soldiers at polling stations – Tanko-Computer
20 mins -
Drama as police corner armed robbers inside locked forex bureau at Lapaz
31 mins -
Nigerian-born conquers childhood hearing loss to become KNUST’s overall best graduating student
56 mins -
ECOWAS Court orders compensation for violations against New Force’s Shalimar Abbiusi
1 hour -
Dreams FC denies allegations of attempting to sign Najeeb Yakubu
2 hours -
Election 2024: ‘Right to free and fair elections non-negotiable’ – Akufo-Addo
2 hours -
Kurt Okraku took out my passport from the U23 squad that travelled to Japan – Najeeb Yakubu alleges
2 hours -
Where hope fails: Ghana’s decaying home for the destitute
3 hours -
NDC Mining Committee for 2024 campaign refutes allegations of recruiting thugs for elections
3 hours -
Traction Control: A lifesaver with an off switch? Here’s why it exists
3 hours -
I don’t need anyman to woo me with money – Miss Malaika 2024 winner refutes pimping claims
3 hours -
”Kurt Okraku sabotaged my national team career because I refused to sign with Dreams FC” – Najeeb Yakubu
3 hours -
Businesses urged to leverage Generative AI for enhanced customer engagement
3 hours -
MultiChoice Ghana partners with Ghana Hotels Association to elevate guest entertainment
3 hours