**Upwork Inc. Announces Restructuring Plan with Workforce Reduction of 21%**

On October 23, 2024, Upwork Inc. (NASDAQ: UPWK) revealed its strategy for sustaining profitability and enhancing efficiency through a restructuring plan. The initiative aims to propel innovation for its clients and maintain the company’s upward trajectory.

As part of this restructuring, Upwork plans to reduce its workforce by 21%. The company anticipates completing the execution of the plan by the end of the fourth quarter of 2024. In line with these actions, Upwork estimates incurring pre-tax charges totaling approximately $17 million to $22 million in its GAAP financial results. These expenses primarily cover severance and other one-time termination benefits for affected employees.

Most of the charges are expected to be realized as cash expenditures, with a significant portion set to be recognized in the fourth quarter of 2024. It is essential to note that these estimates are subject to various assumptions, such as compliance with local regulations in different jurisdictions. The actual expenses might deviate significantly from the initial projections, and unforeseen events during the plan’s implementation could lead to additional unanticipated charges.

Furthermore, on the same day, Upwork disclosed this restructuring plan through a press release. The information provided in the press release is not considered filed for Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any other Securities Act or Exchange Act filings, except with specific references.

In compliance with the forward-looking statements, Upwork highlighted that the forward-looking details, apart from historical facts, are subject to uncertainties and risks. The company based these statements on its present expectations and assessments regarding potential events and trends that might influence its financial standing, operations, and business strategy.

Although the company cannot guarantee the realization of projected outcomes or the occurrence of future events as expected, they emphasized the disclaimer that actual results could materially differ from their forecasts or intentions. Upwork underlined a commitment to updating or revising forward-looking statements in accordance with legal obligations.

Investors seeking additional information about potential risks and uncertainties are encouraged to refer to the “Risk Factors” section in Upwork’s Quarterly Report on Form 10-Q, filed with the U.S. Securities and Exchange Commission on August 7, 2024, in addition to the company’s other SEC filings available on their Investor Relations website and the SEC’s official platform.

The press release associated with the announcement is filed as Exhibit 99.1 in the Current Report on Form 8-K dated October 23, 2024, along with the Cover Page Interactive Data File embedded within the Inline XBRL document.

Please note that the current report has been signed by Erica Gessert, Chief Financial Officer of Upwork Inc., on October 23, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Upwork’s 8K filing here.

Upwork Company Profile

Upwork Inc, together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development.