Upwork, the freelance marketplace valued near $1.7 billion, plans to eliminate 21% of its workforce even after posting a $28 million quarterly profit.
The Bay Area platform announced the cuts Wednesday through a regulatory filing and corporate statement. Roughly 160 positions could disappear, based on the 800 employees Upwork reported at the close of 2023.
A WARN notice filed with California authorities revealed 67 separations slated for December 23 at the company’s Palo Alto office. Those departures include eight vice presidents alongside numerous directors and managers.
CEO Hayden Brown framed the restructuring as an effort to flatten management layers, refocus teams on core priorities, and speed up decision-making. She pointed to growing automation adoption across the business as a key driver.
“For a company with a mission centered around creating economic opportunity, reducing our workforce is a painful step to take,” Brown wrote in a staff message. She thanked departing employees for their “energy, commitment and LUV.”
The financial picture adds a striking contrast. Upwork pulled in $194 million in revenue for the July through September quarter, beating internal projections. The company expects the cost reductions to save approximately $60 million annually.
This marks the second major round of job cuts at Upwork in two years. The company previously shed 137 workers in 2023, a 15% reduction of its full-time staff.
A spokesperson declined additional comment, pointing instead to the official release and Brown’s letter. The layoffs reflect a broader pattern across Bay Area tech firms pursuing profitability even amid revenue growth.
