Match Group expects that the job cuts would help improve its margins in the second half of the year, according to a Reuters report.
The parent of the popular dating platform Tinder – Match Group – has announced a job cut of 8% across the globe. The move will impact around 200 employees and comes as the company’s first-quarter revenue guidance fell short of estimates.
According to a Reuters report, the layoff will mainly impact areas such as recruiting. Additionally, job cuts have already happened in the U.S., and it is being implemented in other countries.
Match Group, also parent to Hinge and OkCupid, has incurred severance and other similar expenses of around $3 million during the fourth quarter. The company expects an additional cost of about $6 million this year.
According to another Reuters report, Match Group expects its first-quarter revenue between $790 million and $800 million, missing analysts’ estimates of $817.3 million. The American multinational dating platform reported a revenue decline of 2% at 7$86 million in the fourth quarter that ended December 31, further lower than expected $787.3 million revenue.
In the past, several multinational tech giants like Alphabet, Microsoft, Meta, and Twitter have also trimmed their workforce as they brace for a global economic slowdown. In a nutshell, a setback in consumer spending due to high inflation and the threat of a looming recession this year has pushed corporates to keep a lid on their spending.