Match Group slows hiring to fund AI push

Match Group is slowing its hiring plans for the rest of the year to fund the adoption of artificial intelligence tools for its employees. The company is making a push around AI enablement by giving employees access to tools and training, aiming to become an “AI-native” company—defined as a company strategy where AI is integrated into all internal operations. Match Group CFO Steven Bailey explained the financial trade-off: “We think it’s a huge opportunity. But these tools cost a lot of money, as I’m sure you know, and so the way we’re helping to pay for that is by slowing our hiring plans for the rest of the year.” The company expects the move to be cost-neutral, betting that increased employee productivity will eventually drive revenue growth.

The hiring slowdown comes as the company navigates shifting financial performance. In its first-quarter earnings, Match Group reported the following results:

• First-quarter revenue: $864 million, representing a 4% year-over-year growth.
• Next-quarter revenue estimate: Projected to be around $850-$860 million, which represents a potential year-over-year decline of down 2% to flat.

The company’s flagship dating app, Tinder, is showing mixed signals of stabilization. In March, Tinder’s monthly active users declined by 7%, which is an improvement compared to a far-steeper 10% decline recorded a year ago. Meanwhile, Bloomberg reported that Tinder registrations grew by a mere 1%. This represents the first time registrations have grown since 2024, signaling a potential, though slight, turnaround for the app.

To address a broader generational shift and declining interest in traditional dating apps among younger users, Match Group is pivoting its product roadmap. The company plans to increase its focus on IRL—In Real Life (offline social gatherings)—events. Match Group CEO Spencer Rascoff noted that Gen Z users desperately want to connect and meet new people, but they want to do so in a low-pressure, low-stakes way that does not feel like a job interview. Rascoff explained that traditional dating apps are highly structured and can be intimidating to users under 30, which has led the company to adapt its roadmap to this reality.

Why it matters

Match Group’s strategy highlights a broader corporate trend: sacrificing headcount to fund AI integration while attempting to solve the “dating app fatigue” affecting younger demographics through offline experiences.