In a strategic move to enhance efficiency and cut costs, Match Group, a leading player in the online dating industry, has announced a substantial reduction in its workforce. This decision, which will see 13% of its employees laid off, is part of a broader reorganization effort aimed at streamlining operations and improving profit margins.
Approximately 325 positions will be impacted by this decision, based on the company’s workforce of around 2,500 employees as reported in their annual filing. Additionally, the company will be closing several open positions as part of this restructuring initiative.
The reorganization plan is designed to flatten the management structure, with nearly 20% of managerial roles being affected. This approach aims to centralize essential functions such as technology and data services, customer support, content moderation, media purchasing, and international market strategies, according to the company’s official statement.
Spencer Rascoff, who took over as CEO in February, emphasized that this restructuring is intended to unify Match’s operations, moving away from a model where various brands operate independently. Match Group oversees a variety of well-known dating platforms, including Tinder, Hinge, and OkCupid, among others.
Through these cost-cutting measures and organizational changes, Match Group anticipates saving over $100 million on an annual basis, with projected savings of around $45 million for the year 2025, as stated by Rascoff.
In addition to these changes, the company reported a 3% decline in first-quarter revenue, totaling $831.2 million compared to the previous year. This decrease is attributed to a 5% drop in the number of users subscribing to their services. Furthermore, the net profit saw a year-on-year decline of 4.6%, amounting to $117.6 million.