Finances

Tinder CEO Faye Iosotaluno announced in a post on LinkedIn that she will be leaving her role in July after two years as head of the app and eight years working for parent company Match Group.

This is the latest shakeup for Match Group, whose new CEO Spencer Rascoff recently announced that Tinder’s chief technology officer would also be leaving at the end of May, with no replacement named.

Match Group said it would be laying off 13 percent of its workforce in efforts to cut spending, the bulk of which would come from Tinder, according to The New York Post. Tinder has seen a decline in paying users over the last several quarters, and activist investors have been pushing for a turnaround. Hinge is the company’s bright spot, which is steadily growing despite the industry’s general decline.

Dating app giant Match Group is set to cut 13 percent of its staff, a reduction of about 325 employees from its most current count of 2,500. The company will also be closing all open positions.

This news comes after another disappointing first quarter. The company said in an earnings call that paid users fell more than 5 percent from a year ago, a trend that continues as more young daters look for ways to meet outside of dating apps. According to Fortune, the company’s new CEO Spencer Rascoff said that the staffing cuts will save Match Group about $100 million per year, and about $45 million in 2025 alone.

The trimming of staff will mostly focus on management according to Tech Crunch, with about one in five managers affected. The company wants to centralize key functions like technology and data services, customer care, and content moderation. It also wants to focus on media buying and international go-to-market functions to increase customer reach.

Randian Capital, an activist investor in Bumble, is urging the company to follow its “turnaround plan,” which also includes a potential sale.

The investor group spent six months analyzing Bumble’s business practices and is advocating for drastic change to be made because “the current trajectory is not working,” according to sources who spoke to Investing.com.

When asked about potential buyers, Randian mentioned one interesting company – Meta, which owns Facebook, Instagram, and WhatsApp, and dominates the social media market. Meta is also currently the subject of an SEC investigation into the nature of its previous mergers, which are alleged to violate anti-trust laws, due to some internal correspondence among its executives.

Dating app Hinge announced that it is adding a $1 million fund for in-person events and social group gatherings in New York, Los Angeles, and London.

According to CNBC, the money is to subsidize free or lower cost events to attract young people. The fund is part of their One More Hour social impact initiative which the company launched last year. Hinge says it recognizes Gen Z’s need for more tangible ways to connect than just over a dating app, and wants to create more spaces for them to get together.

The groups will focus on a range of activities that include food, nature, and reading, for example. The purpose of the groups is to highlight an interest to attract people and give them something to do while they are meeting other people, taking the pressure off.

A vast majority of daters – 85 percent of women and 87 percent of men - want apps to verify the ages, recency of photos, and locations of potential matches.

According to a new study from TransUnion, over half of those surveyed also said that dating app profiles didn’t accurately reflect the people they met in person. Women were twice as likely to say that people lied about their age, and men were more likely to say they were a victim of a “bait and switch” according to the company’s press release. The study is entitled “The Paradox of Online Dating: Convenience vs. Connection.”

In fact, of those surveyed, more than 75 percent said they were willing to undergo background checks themselves to bring more transparency among dating app users.

Match Group's New COO: Hesam Hosseini

Match Group has appointed a new COO and new CEO, shaking up the executive team in hopes of a turnaround after several disappointing quarters.

Spencer Rascoff has taken over from Bernard Kim as CEO, and Hesam Hosseini was promoted to Chief Operating Officer, and will take the reins in April. The company also announced Gary Swidler will step down as President but will remain as an advisor through July.

Hosseini served as CEO of Evergreen & Emerging Brands for Match Group, one of the bright stars in recent months for the company. Some of its smaller, more niche apps under his direction have shown growth while the company’s star app Tinder has continued to decline.