News Summary

Upwork, a leading platform connecting companies with freelancers, has announced its strategic move into the corporate staffing market through the acquisition of Bubty, a workforce management platform, and the signing of a definitive agreement to acquire Ascen, a global compliance and employer of record company. This initiative aims to establish a stand-alone enterprise-focused business under the Upwork umbrella, enabling the company to offer a broader array of talent solutions beyond independent contractors. The new entity will cater to various contract types, including agent of record, employer of record, and staff augmentation. The decision to create a separate enterprise business is driven by the distinct needs of large enterprises for compliance and software integrations, differing from those of small and midsize businesses. Upwork’s enterprise segment currently accounts for approximately $100 million of the company’s $750 million annual revenue. The full branding and offerings of the new business are expected to be unveiled later this year.