In the midst of a labor organization initiative, Grindr Inc. is grappling with a substantial decrease in its workforce, a situation exacerbated by a newly implemented return-to-office policy.
As reported by Bloomberg, the stringent rule, which mandates employees to work from specific “hub” offices two days a week, has been met with resistance, leading to the resignation of around 80 out of 178 workers, as disclosed by the Communications Workers of America (CWA).
The labor union, which has recently filed its second complaint against Grindr in a month, perceives the company’s move as a tactic to stifle employees’ concerns about their working conditions. The policy came shortly after a significant number of employees expressed their intention to unionize, a move that is still seeking official recognition from the company.
Grindr’s CEO, George Arison, discussed the ongoing situation at a conference, indicating that the company anticipates further reductions in the staff. He noted the short-term financial gains of operating with a smaller team but acknowledged the substantial role of personnel costs in the company’s expenditure, second only to app distribution fees.
Erick Cortez, a member of the organizing group, raised concerns over the app’s stability and user safety, citing the diminished workforce. He accused Grindr of attempting to mute the workers and obstruct their right to organize, irrespective of the potential repercussions.
Despite the internal strife, Grindr has revised its annual revenue and profit projections upward, attributing the positive outlook to the enthusiastic reception of its new subscription services and features. The company’s shares have seen a 17% increase this year.
The unfolding scenario at Grindr is reflective of a broader tension in the corporate sector, with many companies, including giants like Amazon and AT&T, enforcing return-to-office rules. These policies have sparked debates on employee autonomy and productivity, with research suggesting potential negative impacts on worker satisfaction and engagement.
The labor organization initiative, backed by a considerable portion of the prospective bargaining unit of around 100 employees, continues to forge ahead despite lacking the company’s endorsement. The CWA maintains that Grindr’s policy is retaliatory, a response to the union drive initiated in July.