Freelance platform Upwork is taking a major step into the enterprise staffing space with the acquisition of two companies, marking a strategic shift to offer more than just freelance talent. The company has acquired workforce management platform Bubty and signed a definitive agreement to acquire Ascen, a global compliance and employer of record (EOR) firm.
Announced just ahead of its Q2 earnings call on August 6, the move signals Upwork’s intent to build a dedicated enterprise-focused division under its brand. This new unit will support various employment models, including staff augmentation, agent of record, and employer of record services, enabling large companies to access flexible, compliant, and scalable staffing solutions.
Traditionally known for connecting businesses with freelance professionals, Upwork is now aiming to meet the growing needs of enterprise clients seeking more structured and compliant workforce models. CEO Hayden Brown emphasized the rising demand for integrated solutions that deliver both flexibility and compliance — something most staffing providers struggle to combine.
“Most providers force customers to choose between flexibility and compliance, or speed and scale,” Brown told TechCrunch. “With this new capability, we’re giving customers all the benefits they’ve been looking for.”
Currently, Upwork’s enterprise services account for approximately $100 million of its $750 million annual revenue. Spinning off this business into a stand-alone entity allows for sharper branding and focused development, offering solutions better suited to the complex requirements of large organizations, such as legal compliance and software integration.
Upwork evaluated over 100 acquisition targets before selecting Bubty and Ascen. Both were tested individually, then together, and according to Brown, their technologies not only worked well independently but integrated smoothly into Upwork’s infrastructure, creating a powerful foundation for the new division.
“We saw through the power of those pilots how impactful their technology was,” Brown said. “It was easy to snap together what each of them offers to deliver something very new and innovative.”
While the new entity’s name and full service offerings haven’t yet been revealed, Upwork plans to unveil more details later this year. The company’s goal is to launch a unified platform that delivers both agility and robust compliance, positioning it to compete directly with traditional staffing giants and enterprise hiring platforms.
With this strategic expansion, Upwork is clearly moving beyond its gig economy roots — aiming to redefine how corporations source and manage global talent.
