Bumble’s Texas Workforce Declines by a Third Following Passage of Restrictive ‘Heartbeat Act’ Abortion Bill
In a shocking revelation, Bumble, the popular dating app, has reported a significant decline in its Texas workforce since the state passed the controversial abortion SB 8, also known as the Texas Heartbeat Act. The data was shared by Bumble’s Interim General Counsel, Elizabeth Monteleone, during a panel discussion at the SXSW conference in Austin, Texas. The panel focused on the “healthcare crisis in Post-Roe America” and featured women who have spoken out about the need for doctors to be involved in healthcare decisions instead of politicians.
Bumble, headquartered in Austin, is now facing the repercussions of the restrictive abortion law. Monteleone revealed that the company is no longer requiring employees to join their Austin location, as they have transitioned into a remote-first company. This change was made to support employees who have chosen to move out of state. As a result of the passage of SB 8, Bumble has experienced a reduction of about a third in its Texas workforce. Monteleone acknowledged that while not all departures may be directly tied to this specific legislation, there are other Texas laws or proposed laws that do not align with Bumble’s values.
To demonstrate their stance against the Texas abortion law, Bumble became the first business to join an amicus brief in support of a lawsuit against the legislation. The suit claims that the law endangers the lives of pregnant women by discouraging doctors from providing abortion care due to potential legal consequences. Women involved in the case are suing the state for being forced to carry out their pregnancies despite health risks. Some have had to travel out of state for healthcare, which further exacerbated their health concerns. The case has also garnered support from several Texas doctors who believe they can no longer practice medicine properly.
While the panel discussion primarily focused on the political and personal aspects of these laws, Bumble’s lawyer emphasized the impact they have on businesses. Monteleone highlighted the increased costs of attracting and retaining talent in Texas as a result of the law. She also mentioned the additional expenses incurred by providing healthcare benefits to employees. Bumble’s founding principles, centered around empowering women, allowed them to combine a business-centric argument with their support for the lawsuit.
Since Bumble’s involvement, other Texas businesses including rival Match Group and SXSW have joined the amicus brief. They share concerns about the potential challenges in attracting and retaining talent due to these restrictive laws. Monteleone emphasized that the location of a job is a significant consideration for prospective employees.
In response to the law’s passing, Bumble has introduced enhanced healthcare benefits that cover the costs of various reproductive rights options, including abortion, IVF, surrogacy, egg freezing, and gender-affirming care. Other companies have also stepped up to offer similar benefits, despite the financial burden it may impose.
These issues are particularly pressing for Bumble as the company is currently facing growth challenges. Trying to appeal to a younger audience that appears less interested in dating apps than older demographics, Bumble posted a weak Q4 with a net loss of $32 million and $273.6 million in revenue. The company recently underwent organizational shifts, including founder Whitney Wolfe Herd stepping down as CEO and the appointment of Lidiane Jones as the new CEO.
The impact of the Texas Heartbeat Act on Bumble’s workforce serves as a reminder of how legislation can affect businesses and their ability to attract and retain talent. It raises important questions about the role of businesses in advocating for social issues and supporting their employees’ rights. As the fight against restrictive abortion laws continues, it remains to be seen how companies will navigate these challenges and stand up for what they believe is right.