Upwork Inc.'s stock plummeted 18.47% in pre-market trading, following the release of its first-quarter 2026 financial results and a significant corporate announcement.

The freelance platform reported quarterly revenue of $195.5 million, which slightly missed analyst expectations. Concurrently, the company announced a major restructuring plan that includes cutting approximately 24% of its workforce. Management cited the evolving "nature of work" as artificial intelligence technology advances as a key reason for the reorganization, aiming to build a more efficient operating model.

Investors reacted negatively as Upwork also substantially lowered its full-year revenue outlook. The company now expects 2026 revenue between $760 million and $790 million, down from its previous guidance of $835 million to $850 million. This downward revision, coupled with the large-scale layoffs, drove the sharp decline in share price despite the company reporting a beat on adjusted earnings per share.