Grindr Cuts Workforce by Almost Half Due to RTO Regulations

Following the announcement of a unionization plan by a majority of its employees, Grindr Inc. has implemented a stringent return-to-office policy, resulting in a significant reduction of approximately 45% of its workforce.

About 80 of the LGBTQ dating app company’s 178 employees were forced to resign after the company in August mandated employees return to work in person at designated “hubs” two days a week or be fired, the Communications Workers of America said in a statement. statement on Wednesday.

The West Hollywood, Calif.-based company also issued a severance package to staff who were unable to relocate, CWA said, in an attempt to “silence employees from speaking out about their working conditions,” according to a statement from the organization. CWA filed a new labor complaint against the company on Wednesday, the second such complaint in about a month.

“These decisions have left Grindr dangerously understaffed and raise questions about the safety, security and stability of the app for users,” organizing committee member Erick Cortez said in a statement. “It’s clear that Grindr wants workers silenced and prevented from exercising our right to organize, no matter the cost.”

Grindr did not immediately respond to a request for comment.

But CEO George Arison told investors at the Goldman Sachs Communacopia Technology conference in San Francisco this week that more layoffs are expected as a result of the mandate, which is financially beneficial in the near term.

“The team is going to be smaller than where we were before and where we want to be,” Arison said. “So this will have a positive impact on the margin in the near future. But I think it also shows that you can have a lot of influence in this business because you don’t need such a big team to do the things that we need to do.”

According to Arison, staffing is the “single largest expense” after the fees paid to app distribution platforms such as Apple Inc and Alphabet Inc’s Google.

A review of LinkedIn posts by former Grindr employees shows differences in the different roles of iOS app development, IT, and product strategy.

Grindr’s public clash highlights broader tensions between employers and their workers as they are increasingly invited back to the office after years of flexible work policies during the pandemic.

Amazon.com Inc. CEO Andy Jassy has stepped up RTO rhetoric, telling staff who refuse to comply with the company’s mandate to do office work three days a week that “it’s probably not going to work for you,” according to an Insider report. AT&T Inc. told 60 000 managers that they must report to work in person at one of the nine locations, which some employees see as a downsizing measure.

According to a study by real estate agent Cushman & Wakefield, back-to-the-office activities weaken employee engagement and their ability to perform at their best. “If you take away the freedom of choice from your employees, there’s going to be a big cost,” said Bryan Berthold, global head of work experience, in a LinkedIn post about the report in August.

The CWA told the National Labor Relations Board in August that this policy was in response to a union initiative announced by workers on July 20. The labor organizing effort, which is still ongoing because it has not yet received corporate recognition, has tremendous support. among the proposed bargaining unit of about 100 workers, pro-union staff have said.

Last month, Grindr improved its full-year outlook for revenue growth and profit margins, spurred by strong demand for its recently launched weekly subscription offer and other new features. This year, the shares have risen by 17 percent.