In a decisive move to reshape its future, dating app giant Bumble has announced plans to lay off approximately 30% of its global workforce — around 240 positions. The strategic overhaul is part of the company’s renewed focus on core offerings and long-term growth, with the job cuts expected to save about $40 million annually.

Following the announcement, Bumble's shares surged by 25%, reflecting investor confidence in the company's plans to stabilize operations and regain momentum after a sharp fall in valuation. Once valued at $7.7 billion during its high-profile 2021 IPO, Bumble’s market cap has since plunged to roughly $673 million as of Wednesday’s market close.

In a filing submitted to regulators, the company revealed that it will undergo a major organizational restructuring designed to streamline operations and improve execution on strategic goals. While this transformation is expected to incur a one-time cost of $13 million to $18 million — impacting earnings in the third and fourth quarters — the long-term financial benefits are projected to be significant.

A Bumble spokesperson addressed the layoffs in a statement to CNBC, saying, “We did not come to this decision lightly. Our priority now is to move ahead in a way that reinforces our core offering, better serves our community, and sets the foundation for future success.”

The company aims to channel the cost savings into enhancing its technology and accelerating product innovation, two areas it believes are critical to staying competitive in a crowded online dating space.

Though Bumble has not specified which regions or departments will be most affected, the company emphasized that the cuts are part of a strategic simplification of its business model.

Bumble also raised its financial guidance for the current quarter, now expecting revenue between $244 million and $249 million, an increase from its earlier forecast of $235 million to $243 million. Additionally, the firm projects adjusted EBITDA to fall within the range of $88 million to $93 million — up from prior guidance of $79 million to $84 million.

“We are reorganising our structure to deliver more effectively on our strategic goals,” the spokesperson added. “This will allow us to redirect resources towards areas that can drive meaningful value for our members and shareholders alike.”

As the platform known for empowering women in the online dating world faces heightened competition and slowing user growth, Bumble is betting on a leaner structure and stronger tech focus to reclaim its market edge.