Upwork has widened the restructuring it began in May. In an amended Form 8-K filed on 12 November, the company said its board approved an expansion of the plan on 10 November. With an additional reduction in force, and a separate reduction initiated by a subsidiary, Upwork now expects to reduce its total workforce by approximately 37%, inclusive of the approximately 24% it disclosed on 7 May.
The cost estimate grew with it. Upwork now expects $27 million to $37 million in total pre-tax restructuring charges, up from the $16 million to $23 million previously disclosed, “consisting primarily of severance and other one-time termination costs for the impacted workforces.” It had recognized $18.1 million through 30 September. The completion date moved from the fourth quarter of 2026 to the first quarter of 2027.
Why it matters for HR leaders
HR teams buy independent talent through Upwork, and employer of record services through its Lifted unit, covered earlier this month in Upwork’s Lifted Acquires Employer of Record WorkMotion for About $129.7 Million. For those buyers, the filing sets the timeline: Upwork expects the plan to be substantially complete in the first quarter of 2027.
The detail in the filing
The 37% figure combines two programmes: the expanded company plan and a reduction the filing calls “separate” and “independent,” started by a subsidiary it does not name. The filing also says its cost estimates depend on assumptions “including local law requirements in various jurisdictions.” In our reading, that is the sentence HR teams planning their own reductions should note: severance across several countries is priced country by country, so the estimate stays a range until each country’s terms are known. For the wider picture on cuts, see Challenger: October Job Cuts Fall to 43,994 as Seasonal Hiring Plans Rise 26%.
Source: Upwork Form 8-K/A, SEC
