The dating app operator Bumble said on Monday that Whitney Wolfe Herd, the creator (BMBL.O), will relinquish her position as chief executive and be replaced by seasoned tech and business expert Lidiane Jones. This news caused Bumble’s shares to plummet nearly 9% to a record low.
Jones has over 12 years of experience in key business roles at Microsoft (MSFT.O). She is currently the CEO of Slack, a company owned by Salesforce (CRM.N). On January 2, she will assume leadership, with Wolfe Herd continuing as executive chair.
“Lidiane’s experience and performance history in technology and products are outstanding,” stated Wolfe Herd, the company’s artificial intelligence coordinator.
Wolfe Herd, 33, co-founded rival service Tinder, which is owned by Match Group, and left the firm after a contentious breakup. Because it empowered women to initiate contact, Bumble’s name-brand app made a name for itself in the market.
With Friends, Badoo, Fruitz (for Gen Z), and Official among its dating services, Bumble has been under pressure to expand in recent years because of turmoil in some areas, such as Eastern Europe, and rivalry from larger rival Match (MTCH.O).
In February 2021, Bumble raised over $2 billion at its IPO, contributing to the growth of online dating services in the face of mobility restrictions brought on by pandemics.
Following the resignation of President Tariq Shaukat, who left the company after three years in office, this is the second significant senior departure from Bumble this year.
“We are incrementally negative on the news, pending greater details… we view Whitney’s departure as a near-to-midterm headwind for business operations and a negative for overall company morale,” Evercore analysts wrote in a report.
On Tuesday, Bumble is expected to release its third-quarter financial results. The price of its shares was $12.49.
