By Don Nico Forbes
Upwork plans to axe 21% of its workforce as part of a reorganization of operations intended cut costs and boost growth.
The online marketplace operator said the job cuts are expected to generate roughly $60 million in annualized cost savings, with between $17 million and $22 million in pretax restructuring charges expected mainly in the fourth quarter.
"The company is flattening team structures and leveraging more automation and third-party services to simplify processes and operate more efficiently at scale," the company said.
Shares were recently up 19.6% at $12.02, but remain down by about 19% year to date.
Upwork added that preliminary results for the third quarter are expected to exceed prior guidance, with revenue now anticipated at $194 million, above its previous range of $179 million to $184 million.
Net income is seen at $28 million. Analysts are expecting net income of $16.3 million, according to FactSet.
Write to Don Nico Forbes at don.forbes@wsj.com
(END) Dow Jones Newswires
October 23, 2024 09:38 ET (13:38 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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