Upwork Expands Headcount Reduction Under Restructuring Plan From ~24% To ~37%; To Be Complete In Q1 2027; To Incur ~$27M-$37M In Pre-Tax Restructuring Charge

On May 7, 2026, Upwork Inc., or the Company, announced a restructuring plan, or the Restructuring Plan, intended to build a more efficient operating model and position the Company for profitable growth as the nature of work evolves. The Company announced that it expected the Restructuring Plan to reduce the total workforce by approximately 24% and the execution of the Restructuring Plan to be substantially complete in the fourth quarter of 2026.

On November 10, 2026, the Board of Directors of the Company approved an expansion of the Restructuring Plan. The Company has identified additional cost-saving opportunities, and the Restructuring Plan, as expanded, now includes an additional reduction in force that, when aggregated with a separate, independent reduction in force initiated by a subsidiary of the Company, results in an expected reduction of the total workforce by approximately 37%, inclusive of the approximately 24% previously disclosed. The Company now expects execution of the Restructuring Plan to be substantially complete in the first quarter of 2027.

In connection with these actions, the Company estimates that it will incur approximately $27 million to $37 million in total pre-tax restructuring charges under generally accepted accounting principles in the United States, inclusive of the approximately $16 million to $23 million previously disclosed, consisting primarily of severance and other one-time termination costs for the impacted workforces. The Company recognized $18.1 million of these charges through September 30, 2026. The Company expects most of the remaining charges to be cash expenditures and to be recognized over the next three quarters, with the majority of these charges being recognized in the fourth quarter of 2026.

The estimates of the expenses that the Company expects to incur in connection with these actions, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of these actions.