Upwork cuts 2026 revenue guidance and announces 24% layoffs

6 articles · Updated · Barron's · May 7

The freelancer platform posted adjusted Q1 earnings of 35 cents a share on $195.5m revenue, beat profit estimates, and its stock fell 20% to $8.33.
Management said clients are reducing freelance spending amid inflation, high rates and energy-cost pressures, while some lower-end customers are replacing hired work with AI tools.
The update adds to concerns over weakening tech and freelance hiring, with Citizens downgrading the stock and analysts viewing Upwork as an early signal of AI-driven labour market strain.

Upwork's AI promises higher pay for freelancers. So why fire a quarter of its own staff?

Is AI a convenient excuse for Upwork's massive layoffs amid a revenue downturn?