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November 19.2025

2 Minutes Read

Freelancers Step Up as HR Adapts to Layoffs: A Look at Workforce Strategy

Freelancers working in a cafe, focused on laptops, amid layoffs.

The Rise of Freelancers in a Changing Workforce

As layoffs continue to affect various industries, companies are increasingly turning to freelancers to fill skill gaps and maintain operational flexibility. A recent report from Upwork reveals a significant shift, with 78% of businesses planning to hire independent workers within the next three months. This surge is driven by the need for rapid hiring without the commitment of full-time employment, emphasizing a future where flexible talent plays a pivotal role in organizational strategy.

Freelancing: A Solution to Layoffs and Skill Shortages

In a climate marked by workforce reductions, freelancers are proving to be a valuable asset. The demand for customer-facing skills is up by 30%, showcasing a need for expertise that can adapt quickly. Additionally, the rise of AI within work processes necessitates human insight—leading 55% of companies to hire data analysts and scientists in the near future. The ability to pivot swiftly, combined with specialized knowledge, allows freelancers to address the evolving needs of organizations.

Emerging Trends in the Gig Economy

The gig economy, which encompasses over 70 million workers in the U.S. alone, is expanding rapidly. As the landscape of work transforms, companies are not only seeking freelancers but are also beginning to integrate them into their core operations. Studies show that skilled professionals, especially those familiar with AI and data-driven marketing, are increasingly embracing freelance roles to gain autonomy over their work and life balance. This trend signifies a vital change in workforce dynamics that HR leaders must address in their workforce strategy.

The Value of People-First Leadership

For CHROs and operational leaders, adapting to this new gig economy presents a unique opportunity to foster a high-performance culture. Implementing people-first leadership strategies ensures that companies can utilize both full-time employees and freelancers effectively. By focusing on employee engagement and succession planning, organizations can harness diverse talent while optimizing workforce strategies. As the report indicates, understanding the changing landscape is crucial for ensuring both employee satisfaction and operational success.

Challenges and Considerations in the Gig Economy

Despite the advantages of hiring freelancers, challenges remain. Many gig workers report issues with income stability and lack of benefits. As organizations adopt more freelancers, they also must consider how to support these workers through robust engagement strategies. Expanding discussions around employee retention strategies and workplace culture is necessary to bridge any gaps that may arise.

People & Performance

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