Match Group Cuts 13% of Workforce Amid Revenue Drop

Match Group, the parent company of Tinder, Hinge, and OkCupid, announced a 13% workforce reduction—about 325 jobs—as part of its response to a continued decline in paying users and revenue. This is the first major move by new CEO Spencer Rascoff, who is seeking to revitalize the company amid industry stagnation and inflation pressures. In Q1 2025, the company's paid user base fell from 14.9 million to 14.2 million, contributing to a 3.3% year-over-year revenue decline to $831.2 million. Although revenue slightly exceeded analyst expectations and operating margins remained steady, Match Group's shares fell 7% after the announcement. The introduction of AI-powered features has driven engagement on some platforms, but concerns persist about sluggish long-term growth and flat revenue projections. Analysts and investors are urging the company to reconsider its capital allocation and strategic direction.