Match Group (NASDAQ:MTCH) layoffs are a hot topic on Wednesday as the dating website operator is preparing to reduce its headcount due to demand changes.
Match Group, the parent of popular dating app Tinder, is going to reduce its headcount by 6%. This is part of the company’s plan to phase out live-streaming services from its app.
Match Group laid out the reasons for this change in its latest earnings report:
“These businesses lack scale in a competitive market, require substantial further investment, and we expect they will deliver margins below the total Company’s desired level. While this decision will result in the loss of approximately $60 million of annual Total Revenue, we’re confident it will be margin and growth enhancing to the Company over the medium term and will allow us to focus on our businesses where we have proven advantages.”
What’s Behind the Match Group Layoffs
This decision was made as activist investors Elliott Investment Management and Anson Funds Management are pushing for changes at the company. That comes alongside weakening demand for the data services company’s business.
That falling interest in dating apps has Tinder downloads dropping 12% in its latest quarter. On top of that, paying Tinder customers are down 8% to 9.6 million. This comes as the app has had trouble regaining ground lost during the Covid-19 lockdowns.
MTCH stock is up 10.9% 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
