Opendoor Cuts Workforce as Chairman Declares Company “Bloated”
UPDATE: Opendoor Technologies is facing drastic changes as its new chairman, Keith Rabois, announces that the company is “bloated” and could slash its workforce from 1,400 employees to just 200. This urgent statement comes as part of a broader discussion on company culture and effectiveness, which Rabois addressed in an interview with CNBC’s “Squawk on the Street” this morning.
Rabois, who recently rejoined the board alongside cofounder Eric Wu and new CEO Kaz Nejatian, emphasized the need for a significant restructuring. “I don’t know what most of them do,” he stated, highlighting a lack of clarity and purpose within the current workforce. The move aligns with a sweeping trend among tech companies reevaluating remote work policies and diversity, equity, and inclusion (DEI) initiatives.
In this rapidly changing environment, Opendoor’s stock has surged an astonishing 470% year-to-date, capturing the interest of retail investors as a meme stock. The stock’s latest boost followed the announcement of Rabois’s return and Nejatian’s appointment as CEO. Market analysts are closely watching how these leadership changes will impact the company’s trajectory.
Rabois criticized the remote work arrangement, asserting, “These people were working remotely. That doesn’t work.” He also indicated that the focus on DEI initiatives had detracted from the company’s core mission. “We’re going to fix all that. We’re back to merit and excellence,” he declared, signaling a shift toward prioritizing performance over policies.
As the tech sector grapples with a return-to-office trend, other major players like Amazon, Google, and Meta have also rolled back DEI efforts, suggesting a broader rethinking of workplace strategies in response to economic pressures.
The implications of Rabois’s comments extend beyond Opendoor, reflecting a growing concern among tech leaders about productivity and workplace culture. The company did not immediately respond to requests for further comment.
As the situation unfolds, investors and employees alike are left to wonder what these changes will mean for the future of Opendoor. With the potential for massive layoffs looming, all eyes are on the company as it navigates this pivotal moment.
Stay tuned for more updates on this developing story.
