Opendoor Chairman Proposes Significant Workforce Reduction Amid Leadership Changes

Opendoor's newly appointed chairman, Keith Rabois, has proposed a substantial reduction in the company's workforce, suggesting a decrease from 1,400 to approximately 200 employees. In a recent interview, Rabois stated, "There's 1,400 employees at Opendoor. I don't know what most of them do. We don't need more than 200 of them."

Rabois attributed this proposed reduction to advancements in artificial intelligence and other technologies, which he believes simplify the problem. He also criticized the company's existing culture, particularly the prevalence of remote work, asserting that it hampers innovation. "The culture was broken," Rabois remarked. "These people were working remotely. That doesn't work. This company was founded on the principle of innovation and working together in person. We're going to return to our roots."

These comments coincide with significant leadership changes at Opendoor. The company recently appointed former Shopify executive Kaz Nejatian as its new CEO, following the resignation of previous CEO Carrie Wheeler amid investor pressure. Additionally, co-founder Eric Wu has rejoined the board of directors.

Following these announcements, Opendoor's stock experienced notable volatility, surging 78% on Thursday before declining 13% on Friday. The stock has risen nearly 500% this year, driven in part by increased interest from retail investors.