Match (NASDAQ:MTCH) layoffs are underway as the online dating company looks to cut costs following poor earnings.
Gary Swidler, CFO of Match, revealed the company’s plan to cut 8% of its workforce during a conference call on Wednesday. The CFO notes that the Match layoffs have already taken place in the U.S. Now, the company just needs to complete the headcount reductions in other regions.
Match says it expects to suffer charges of $6 million related to the layoffs. However, the company expects these actions to improve margins in the second half of the year. This requires revenue growth to meet the company’s expectations.
Match Q1 Earnings
The Match earnings report includes revenue of $786.2 million. Unfortunately, that’s below the $788.8 million Wall Street was expecting. It also represents a 2% revenue decline year-over-year (YOY).
To go along with that, Match’s revenue guidance for the first quarter of 2023 ranges from $790 million to $800 million. That doesn’t look good next to analysts’ revenue estimate of $817.34 million for the quarter.
It’s no surprise that Match shares are falling alongside the layoffs and earnings news. As of this writing, more than 2.8 million shares of the stock have changed hands. That’s closing in on the company’s daily average trading volume of 4.4 million shares.
MTCH stock is down 5.7% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.