Bumble Inc. (BMBL  ) stock gained on Wednesday after it disclosed that it approved reducing its global workforce by approximately 240 roles, representing approximately 30% of its employees.

As a result, the company expects to incur approximately $13 million-$18 million of non-recurring charges.

The company expects to incur the charges primarily in the third and fourth quarters of 2025.

The company expects to achieve up to $40 million in annual cost savings with a reduction in the global workforce.

The company updated its previously announced financial outlook for the second quarter of 2025. It now expects total revenue of $244 million-$249 million (prior $235 million-$243 million) and adjusted EBITDA of $88 million-$93 million.

In May, the company announced that it was pivoting away from growth-at-all-costs to focus on quality matches and user experience under returning founder-CEO Whitney Wolfe Herd during its first quarter 2025 earnings call.

Bumble announced it would cut $20 million from the second quarter of marketing spending with "more to come" throughout 2025, primarily targeting non-organic user acquisition channels. Additionally, Bumble identified $15 million in operational cost savings to be realized by year-end.

This move by Bumble follows similar actions in the online dating sector. For context, Match Group (MTCH  ), a competitor, had previously announced a 13% workforce reduction.

Bumble stock plunged 37% in the last 12 months as it missed the topline consensus estimates in the previous three quarters.

JP Morgan analyst Cory Carpenter downgraded the stock's rating, citing accelerated revenue and payer declines due to worsening U.S. download trends.

He expects margins to moderate as brand marketing resumes and notes continued challenges in the online dating sector, especially with Gen Z engagement.

Price Action: BMBL stock is up 17.4% at $6.115 at last check Wednesday.