New Delhi, July 31: Tinder parent Match Group is expected to lay off six percent of its employees. The layoffs are reportedly said to be in response to pressure from activist investors to halt live-streaming services across its dating apps. The online dating industry like Match Group and Bumble, has reportedly been under pressure due to a post-pandemic slowdown in user growth. Delays in launching new features and improving user experience have increased these challenges.

The decision reportedly comes despite the company reporting second-quarter revenue. During the second quarter, Match reportedly experienced a four percent growth in revenue. The growth resulted in Match earning a total of around USD 864 million. However, Tinder has seen a continued decline in paying users, which might have also prompted these strategic changes. Intel Layoffs: US-Based Tech Giant To Reduce Significant Workforce by Cutting Thousands of Jobs as Part of Efforts To Save Cost.

As per a report of Reuters, Match Group will lay off approximately six percent of its employees with demands from activist investors who are pushing for changes to improve the company's business. The decision of job cuts and discontinue live-streaming services comes after significant pressure from activist investors, including Starboard Value.

The investor group recently acquired a 6.6 percent stake in Match Group and has been vocal about the need for the company to explore a potential sale if it unable to improve its business performance. The pressure has reportedly accelerated the company's efforts to make strategic shifts. Paying users on Tinder declined by eight percent to 9.6 million in the second quarter from the nine percent decline in the previous quarter. Pfizer Layoffs: US-Based Pharmaceutical Giant Laying Off Hundreds of Employees in North Carolina, Shutting Facilities.

Elliott Investment Management and Anson Funds Management are among the other activist investors pushing for reforms at Match Group. As per reports, the company's third-quarter revenue forecast ranges between USD 895 million and USD 905 million, slightly below market estimates. Analyst Jamie Lumley from Third Bridge has noted that while there are encouraging signs and there is still a lot of work required to stabilise the business.

(The above story first appeared on LatestLY on Jul 31, 2024 12:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).