Tinder’s Owner Cracks Down as Users Shift Gear

Match Group

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MTCH

)

, which owns well-known dating platforms like Hinge, Tinder, OkCupid, and Match.com, is observing that younger users are becoming less engaged with its applications.

In Match Group’s Q1 financial statement for 2025, they disclosed a decline of 5% in their paid user base compared to the previous year. Additionally, the firm reported that its operational profits, which reflect earnings post-expenses, decreased by 7%.


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On May 8, during an earnings call, Match Group CEO Spencer Rascoff stated that the firm’s current difficulties stem mainly from “a deficiency in innovation and our inability to acknowledge and adapt to shifts within the younger market, particularly Generation Z and their preferences.”


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He also mentioned that Tinder, its leading dating app, is specifically losing its relevancy among young consumers.

For ten years, Tinder has functioned like an endless deck of cards, allowing users to swipe left or right based primarily on the perceived attractiveness seen in photos,” explained Rascoff. “This approach proved effective about a decade back when casual relationships were prevalent, smartphones were still novel, and features such as swiping had not yet lost their luster. However, with millennials maturing and Generation Z becoming core users, this model now resonates less, making Tinder feel somewhat misaligned with user needs compared to earlier times.

Match Group implements severe expense-reduction measures.

As Match Group’s dating applications see declining interest, the company is focusing on regaining consumer favor by initially implementing significant changes to its staff structure.

Rascoff mentioned that the firm intends to reduce its staff by 13 percent as part of their strategy to become “more agile, more targeted, and better coordinated, facilitating quicker choices.”

Through this action, Rascoff mentioned that the firm plans to decrease hierarchical levels, which involves roughly one manager out of every five. The Match Group will additionally eliminate several unoccupied positions and will make deeper cuts in operational costs across various sectors like tech support, data services, customer service, content oversight, advertising procurement, among others.


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Match Group expects to generate $100 million in annualized savings, including approximately $45 million this year, through these efforts.

“The best tech companies operate in product-first builder mode, and this next chapter at Match Group is about getting back to that,” said Rascoff. “Fewer layers, faster execution, and a culture focused on creating value through innovation.”

Dating apps are becoming less trendy among younger users.

The shift initiated by Match Group occurs as numerous younger users are experiencing fatigue with dating applications.

Based on a Forbes Health/OnePoll study
survey
Last year, 80% of millennial dating app users reported feeling frequently exhausted by these platforms, with an identical 79% among Generation Z stating the same sentiment.

People using dating apps often feel drained from repeatedly encountering new individuals, missing out on chances, and dealing with dishonesty,” explained Dr. Rufus Spann, a member of the Forbes Health Advisory Board, in the survey. “As time goes on, these negative experiences associated with dating apps may lead an individual to become disillusioned about the entire dating process and their prospects for finding the right partner.


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Approximately 40% of the participants in the survey cited their struggle to establish meaningful connections as the primary cause for feeling burnt out with the applications. Additionally, 35% expressed feelings of disappointment towards others, whereas 27% reported experiencing rejection.

College students have also recently given dating apps the boot. According to a
survey
from Axios and Generation Lab in 2023, 79% of college and graduate students in the U.S. said that they don’t use any dating apps even once a month. The majority of the students also said that they prefer to meet someone in person.


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