Upwork is going beyond its traditional freelance model with the acquisition of two firms, Bubty and Ascen, to establish a separate business unit that targets large enterprises in need of more complex staffing solutions.
The San Francisco-based platform confirmed it has acquired workforce management startup Bubty and signed a definitive agreement to acquire Ascen, a global compliance and Employer of Record (EOR) provider.
These acquisitions are aimed at building a standalone entity that can offer corporate clients broader workforce options, including agent of record, EOR services, and staff augmentation, areas typically dominated by global staffing firms like Randstad and Adecco.
Upwork is realigning its structure to directly serve enterprise clients with high regulatory and compliance needs. Unlike Upwork’s core business that supports small and mid-sized companies, the new division will provide services to large organisations with strict legal and integration requirements.
Speaking on the change, Upwork’s President and CEO Hayden Brown said, “Most of the providers that exist today force their customers to choose between flexibility and compliance, or speed and scale, or having a digital tool versus having something that’s actually robust and for the enterprise. And with this new capability, we’re refusing to compromise. We’re giving our customers all of the benefits they’ve been looking for, and we’ve heard loud and clear that they want this singular solution.”
According to Brown, enterprise clients had been requesting wider access to different categories of talent beyond freelance contractors. In response, the company explored more than 100 acquisition targets before deciding on Bubty and Ascen. Both were initially tested separately and jointly in pilots, which showed promising integration potential.
“We saw through the power of those pilots how impactful their technology was and how easy it was to basically snap together what each of them offers, along with our existing offering to deliver something very new and innovative in the market,” she added.
Upwork’s existing enterprise segment already contributes roughly $100 million to its total annual revenue of $750 million. However, the company’s ambition stretches far beyond that. It is eyeing the $650 billion global contingent workforce market, aiming to become a serious player in full-service talent solutions.
This transition comes at a time when Upwork is experiencing strong financial performance. For the second quarter of 2025, the company posted record revenue of $194.9 million and a net income of $32.7 million. Its adjusted EBITDA margin reached 29%, the highest in the company’s history.
While the company continues to develop AI-driven tools to support platform growth, such as Uma™, its autonomous work agent that facilitates hiring across more than 365 AI-related skills, the fact is that Upwork’s move to challenge legacy staffing firms with a hybrid model that merges digital-first agility with enterprise-grade compliance.
More information about the branding and product offerings of the new standalone unit is expected to be revealed before the end of the year.
