Upwork Inc. (NASDAQ: UPWK) announced a restructuring plan on May 7, 2026, that includes reducing its total workforce by approximately 24%. The company stated the plan aims to build a more efficient operating model and position the organization for growth.

The restructuring is expected to be substantially complete in the fourth quarter of 2026. Upwork estimates it will incur between $16 million and $23 million in pre-tax restructuring charges, consisting primarily of severance and other one-time termination costs for affected employees.

Most of these charges are expected to be cash expenditures recognized over the next two to three quarters, with the majority occurring in the second quarter of 2026. The company noted that actual amounts may differ from estimates due to local law requirements in various jurisdictions and other factors.

Upwork indicated it may incur additional charges not currently contemplated due to unanticipated events during implementation of the restructuring plan. The information is based on a company press release statement.