Upwork to reduce workforce by 24%

Upwork (UPWK) announced a restructuring plan that includes a reduction of the company’s total workforce by approximately 24%. Upwork is taking these actions to build a more efficient operating model and position the company for profitable growth as the nature of work evolves. The company expects execution of the restructuring plan to be substantially complete in Q4 of 2026. In connection with these actions, the company estimates that it will incur approximately $16M-$23M in pre-tax restructuring charges to its GAAP financial results, consisting primarily of severance and other one-time termination costs for the company’s impacted workforce. Upwork expects most of these charges to be cash expenditures and to be recognized over the next two to three quarters, with the majority of these charges being recognized in Q2 of 2026.