Freelance marketplace Upwork is making a significant push into the corporate staffing sector, announcing the acquisition of two firms to launch a new enterprise-focused division. This new entity will aim to provide solutions that go beyond traditional freelance talent.
The company has acquired Bubty, a workforce management platform, and has signed a definitive agreement to purchase Ascen, a global compliance and employer of record (EOR) company.
This move, revealed just before Upwork’s Q2 earnings call on August 6, reflects its strategy to address the rising needs of large organizations seeking more flexible and compliant staffing solutions.
Upwork Moves Beyond Freelancing
While Upwork has primarily focused on connecting businesses with freelancers, this new strategic direction signals a broader ambition. The company plans to merge the capabilities of Bubty and Ascen with its existing enterprise services to create a distinct entity operating under the Upwork brand. This new division will support a variety of employment models, including staff augmentation, agent of record, and employer of record services.
Upwork CEO Hayden Brown said the decision was driven by increasing demand from enterprise clients for access to diverse talent pools that extend beyond the platform’s core freelance offerings.
“Most providers force customers to choose between flexibility and compliance, or speed and scale,” Brown told TechCrunch. “With this new capability, we’re providing customers with all the benefits they’ve been looking for. They want a single, comprehensive solution—and we are now delivering it.”
$100 Million Enterprise Business to Be Spun Off
Upwork’s enterprise division currently generates approximately $100 million of its total $750 million in annual revenue. According to Brown, however, enterprise clients have specific needs, particularly concerning legal compliance and software integration—factors that differentiate them from Upwork’s traditional base of small and medium-sized businesses.
Creating a separate entity will allow for more targeted branding and internal specialization, giving large clients a platform specifically designed for their scale and regulatory requirements.
Why Bubty and Ascen?
Upwork considered over 100 potential acquisitions before choosing Bubty and Ascen. Both firms were individually and then jointly tested in pilots with Upwork. The results reportedly demonstrated how well their technologies complemented each other and how seamlessly they could be integrated with Upwork’s existing infrastructure.
“We saw through the power of those pilots how impactful their technology was,” Brown said. “It was simple to combine what each of them offers to deliver something very new and innovative.”
What’s Next?
Upwork has not yet disclosed the brand name or the complete suite of services for the new business, but it expects to release more details later this year. The company’s goal is to offer a unified platform that provides both flexibility and robust compliance—a key differentiator in the growing enterprise workforce market.
With this strategic expansion, Upwork is signaling its intention to compete more directly with traditional staffing firms and enterprise-level talent platforms, potentially reshaping how corporations hire—far beyond the scope of the gig economy.
