Match Group slows hiring to pay for more AI tools for staff

In short: Match Group, the company behind Tinder, says it will slow hiring for the rest of the year to help cover the rising cost of AI tools for employees.

What happened

Match Group told investors on its latest earnings call that it is expanding the use of AI tools inside the company. AI tools are software that can help with tasks like writing, research, and summarizing (like a fast assistant that works from text).

Chief financial officer Steven Bailey said the company plans to give every employee access to these tools, plus training. He also said the tools are expensive, and that is one reason Match Group will slow its hiring plans for the rest of the year.

Match Group said this should be “cost-neutral,” meaning it expects the savings from hiring fewer people to balance out the extra spending on software. The company is also betting that employees will get more done with these tools, and that this will help revenue over time.

The news comes as Tinder shows early signs of stabilizing after a period of declines. Match Group reported first-quarter revenue of $864 million, up 4% from a year earlier. But it also guided to a lower, or flat, outlook for the next quarter.

Why it matters

For workers, this is another example of companies shifting money from hiring to software. It does not automatically mean layoffs, but it can mean fewer new jobs being created. For everyday users of dating apps, the bigger question is whether this spending leads to better features and a better experience, or whether it mainly helps the company reduce costs.

Source: TechCrunch AI