Opendoor is the latest real estate company to cut jobs—laying off some 550 employees today.
In a blog post, Opendoor CEO and Co-Founder Eric Wu said the 18 percent staffing reduction was in response to “navigating one of the most challenging real estate markets in 40 years.”
“To manage through the turbulence in the market, we’ve worked quickly over the last two quarters to reduce our operating expenses,” Wu wrote. “Prior to today, we scaled back our capacity by over 830 positions—primarily by reducing third party resourcing—and we eliminated millions of fixed expenses.
“We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come,” Wu continued. “And while we may be navigating a once-in-forty year market transition, it doesn’t take away the difficulty, frustration, and sadness downsizing brings. We’ve built a culture and community of #oneteamonedream and worked tirelessly together to serve our customers. This is what makes our decision even more difficult.”
Opendoor is providing severance, extended healthy coverage and job transition support to those affected by the layoffs.