Online freelance marketplace Upwork (NASDAQ: UPWK) announced on Thursday that it is expanding its existing restructuring plan, a move that will result in a total workforce reduction of approximately 37%.
The newly disclosed cuts build upon—and include—the 24% workforce reduction the company had previously announced when it first unveiled its restructuring initiative.
Financial Impact and Charges
In connection with the expanded layoffs, Upwork estimates it will incur between $27 million and $37 million in total pre-tax restructuring charges under U.S. generally accepted accounting principles (GAAP). This revised figure incorporates the $16 million to $23 million in charges the company had previously projected.
According to the company, these expenses will consist primarily of severance packages and other one-time termination benefits for the affected employees.
Upwork has already recognized $18.1 million of these restructuring charges through September 30, 2026. The company expects the remaining balance to consist largely of cash expenditures, which will be recorded over the next three quarters—with the bulk of the remaining costs hitting the books in the fourth quarter of 2026.
Timeline for Completion
With the broader scope of the cuts, Upwork has updated its timeline for the overhaul, noting that it now expects the execution of the restructuring plan to be substantially complete in the first quarter of 2027.
