Feb 1 (Reuters) - Match Group Inc (MTCH.O) said on Wednesday it would lay off about 8% of its workforce, a day after it forecast first-quarter revenue below Wall Street expectations.
The company has already cut jobs in the United States and the process is ongoing in other countries, Chief Financial Officer Gary Swidler said on the earnings call.
Shares of the Texas-based firm were down 7.8%, having lost 11% after the bell on Tuesday following its downbeat forecast.
The dating company joins Big Tech firms and Wall Street titans in reducing staff as they strive to cut costs amid concerns of a recession.
Match said on Tuesday that it incurred about $3 million in severance and similar costs during the fourth quarter and expects an additional $6 million in 2023, adding that its cost cuts will help improve margins in the second half of the year.
"In addition to the cuts, we expect Match to place greater emphasis on marketing its Tinder and Hinge brands, core areas of growth for 2023," said Angelo Zino, analyst at CFRA Research.
The workforce reductions at Match are in-line with staff cuts across the broader tech sector, Zino added.
Match, which has primarily relied on word-of-mouth advertising, said Tinder will be launching its first global marketing campaign in the current quarter to improve brand perception.
Match forecast first-quarter revenue between $790 million and $800 million on Tuesday, lower than analysts' estimates of $817.3 million, according to Refinitiv data.
The company also reported its first-ever quarterly revenue decline, with its top line falling short of analysts' expectations.
(This story has been corrected to fix revenue estimates to $817.3 million, from $917.3 million, in paragraph 9)
