Match Group Expected To Cut 6% Workforce Following Live Streaming Service Axe Announcement

Match Group is set to reduce its global workforce by approximately 6 per cent after they announced dating app live streaming services will be scrapped. 

The internet and technology company shared the redundancy news following the release of this year’s Financial Second Quarter Report yesterday (July 30). 

The Shareholder Letter report revealed live streaming services in their dating app brands will be removed, due to optimising strategy and investment decisions, and the redundancies will save approximately $13 million. 

According to the letter, live streaming services will be withdrawn from brands like Plenty of Fish and Hyperconnect’s Hakuna app as “these businesses lack scale in a competitive market.”

The report noted:  “We’ve made the decision to exit live streaming services in our dating apps and to sunset Hyperconnect’s Hakuna app, which provides live streaming services primarily in Korea and Japan. 

“We continually evaluate our portfolio with an emphasis on making strategic decisions that strengthen our overall growth and margin profile and allow us to focus on businesses where we have deep expertise, and we’re confident this is the case with our decision to exit live streaming.”

The removal of the live streaming services will reportedly result in annual Total Revenue loss of approximately $60 million. 

However, Match Group stated plans to re-deploy some of the Hyperconnect staff, who have “distinct expertise in artificial intelligence (AI)”, to other growing apps including Hinge, Tinder, and Azar. 

A date of the removal of the live streaming services has not been confirmed. 

Other highlights mentioned in the letter include a 4% total revenue growth during the second yearly quarter to $864 million, Tinder Direct Revenue was up 1%, and other brands’ Direct Revenue was up 8% over the prior year quarter.

Match Group noted they predict a rise in Total Revenue in the third quarter, from $895 to $905 million, which includes the revenue impact of exiting our live streaming services over the course of Q3.