Upwork expands restructuring to cut 37% of workforce and raises estimated costs
Key Facts
On November 10, 2026, Upwork approved an expansion of its restructuring plan, raising the expected reduction in its total workforce to approximately 37%, according to a company filing. This total includes the 24% reduction it previously announced, as well as additional cuts under the plan and a separate reduction initiated by a subsidiary. The move follows the company’s announcement of the original plan on May 7, aimed at building a more efficient operating model and supporting profitable growth as the nature of work evolves. With the expansion, the plan’s estimated cost increased, and the expected substantial completion date shifted significantly from the fourth quarter of 2026 to the first quarter of 2027. The company said it had identified additional cost-saving opportunities.
The plan announced in May targeted a reduction of approximately 24% in the total workforce, with substantial completion expected in the fourth quarter of 2026. The new figure, approximately 37%, includes that previous reduction and does not represent additional layoffs of that percentage on top of it. The expansion consists of additional measures under the plan, as well as a separate reduction initiated by a subsidiary. By September 30, 2026, Upwork had reduced its workforce by approximately 20% as part of the restructuring launched in May. These figures show that implementation had progressed before the expansion was announced, while some of the expected reduction remained underway.
Upwork raised its estimate for total pretax restructuring charges to a range of $27 million to $37 million, including the previous estimate of $16 million to $23 million. The company said the charges consist primarily of severance and other one-time termination costs. Through September 30, it had recognized charges of $18.1 million. It also recorded restructuring costs of $4.3 million in the three months ended on that date, within the total of $18.1 million recorded for the first nine months of the year. The company expects to recognize most of the remaining charges in the fourth quarter of 2026, with most of those charges expected to be cash expenses.
The plan expansion comes as Upwork’s third-quarter results showed a decline in platform activity: the total value of services transacted on the platform fell 10.1% year over year, and the number of active clients declined 10% compared with the same period in 2025. The company attributed the decrease in services volume to weaker client acquisition and retention. It also cited the evolving impact of artificial intelligence on some freelance work categories, changes in the search engine optimization environment and macroeconomic uncertainty. In its plan disclosure, the company said it had “additional cost-saving opportunities.” It linked the original plan’s objective to building a more efficient operating model and positioning the company for profitable growth as the nature of work evolves.
The company set the first quarter of 2027 as the expected date for substantial completion of the expanded plan, compared with the previous target of the fourth quarter of 2026 for the original plan. As for the charges, it expects to recognize most of the remaining amounts during the fourth quarter of 2026, within the new total pretax estimate of $27 million to $37 million. Upwork said its expense estimates and timing are based on assumptions that include local legal requirements. It added that actual amounts could differ materially from the estimates. The disclosure did not provide a documented closing price for the company’s shares in the November 12 session, nor did it include the session’s high and low prices.