Upwork is making a bold move into the enterprise staffing space with the acquisition of two companies, Bubty and Ascen, as it builds a new stand-alone entity aimed at expanding beyond its traditional freelance marketplace.
The San Francisco-based company announced the acquisitions ahead of its Q2 earnings call on August 6. Bubty, a workforce management platform, has already been acquired, while Upwork has signed a definitive agreement to acquire Ascen, a global compliance and Employer of Record (EOR) provider.
Together, these companies will be integrated into Upwork’s current enterprise operations to form a separate business unit under the Upwork brand; one designed to meet the increasingly complex needs of large corporate clients.
“This move opens the door to new segments of the staffing market that we haven’t been able to serve before,” said Hayden Brown, Upwork’s president and CEO, in an interview with TechCrunch. “Our enterprise clients have been asking for broader access to talent and now, we’re answering.”
Historically known for connecting companies with independent freelancers, Upwork will now support a broader range of contract types, including agent of record, employer of record, and staff augmentation. The acquisitions position Upwork to compete with traditional staffing firms and global employment platforms.
Brown explained that most solutions currently available force companies to choose between flexibility and compliance or between speed and scale trade-offs that large enterprises increasingly resist.
“With this new offering, we’re eliminating those compromises,” she said. “We’re delivering a robust, scalable solution purpose-built for enterprise, combining digital efficiency with deep compliance support.”
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Upwork’s current enterprise division generates around $100 million of the company’s $750 million in annual revenue. The creation of a dedicated entity reflects a strategic shift to better serve the needs of large organisations, which demand more complex compliance frameworks and deeper software integrations than small and midsize businesses.
Upwork evaluated over 100 potential acquisition targets before settling on Bubty and Ascen. According to Brown, the decision was driven not only by the individual capabilities of each company but also by how well they worked together.
“We piloted Bubty and Ascen both separately and as a combined solution,” she said. “The results were compelling; their technologies integrated seamlessly with each other and with our existing platform. It gave us the confidence that we could launch something truly innovative.”
The new business will operate with a distinct internal focus and external branding, though full details including its name and product offerings will be announced later this year.
With this move, Upwork is aiming to future-proof its business, tapping into the broader workforce transformation driven by hybrid work, AI-powered talent matching, and rising demand for flexible, compliant global staffing solutions.
