{"id":4231,"date":"2023-04-18T17:54:33","date_gmt":"2023-04-18T17:54:33","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2023\/04\/18\/opendoor-cuts-22-of-staff-with-a-new-round-of-layoffs\/"},"modified":"2025-03-13T02:50:39","modified_gmt":"2025-03-13T02:50:39","slug":"opendoor-cuts-22-of-staff-with-a-new-round-of-layoffs","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2023\/04\/18\/opendoor-cuts-22-of-staff-with-a-new-round-of-layoffs\/","title":{"rendered":"Opendoor cuts 22% of its staff in new round of layoffs"},"content":{"rendered":"\n

Even as the housing market<\/a> transitions into the more active spring market<\/a>, firms within the real estate industry are still struggling to overcome the challenges that emerged nearly a year ago when the Federal Reserve<\/strong> began raising interest rates<\/a>. Opendoor <\/strong>is one company that has faced serious headwinds thanks to the rapid housing market cool down<\/a>.<\/p>\n\n\n\n

On Tuesday, the iBuyer<\/a> announced that it had made the \u201cvery difficult decision\u201d to layoff<\/a> roughly 22% of its workforce, or 560 positions. <\/p>\n\n\n\n

According to a company spokesperson, most impacted employees had been in operations roles.<\/p>\n\n\n\n

\u201cWe\u2019ve been weathering a sharp transition in the housing market \u2013 the steepest and fastest rate increase<\/a> by the Fed<\/a> in 40 years, the more than doubling of mortgage rates from historic lows, and the hit to home affordability have driven an approximately 30% decline in new listings from peak levels last year. We\u2019re taking these actions now to better align our operational costs with the anticipated near-term market opportunity, while maintaining our critical technology investments that will continue to drive the business long term. While this was a hard decision, it was necessary to ensure that we can continue to deliver on our mission and serve our customers for years to come,\u201d an Opendoor<\/a> spokesperson wrote in an email.<\/p>\n\n\n\n

Workers facing cuts will receive severance, extended healthcare benefits and job transition support, according to the iBuyer.<\/p>\n\n\n\n

This is the second round of substantial cuts the firm has undergone in the past six months. In November<\/a>, Opendoor announced that it had cut 550 jobs, or roughly 18% of its workforce at the time.<\/p>\n\n\n\n

Thanks to the rapid housing market shift, Opendoor struggled in 2022, recording a net loss of $1.4 billion<\/a>.<\/p>\n\n\n\n

\u201cNavigating a major housing cycle has not been easy,\u201d Carrie Wheeler, the CEO of Opendoor, told investors during the firm\u2019s fourth-quarter 2022 earnings call in late February. \u201cAs for right now, we are highly focused on stabilizing our core business and ultimately returning to positive free cash flow.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Opendoor cut 22% of staff on Tuesday, marking its second round of cuts since November when it cut 18% of its workforce.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nOpendoor cuts 22% of staff in new round of layoffs<\/title>\n<meta name=\"description\" content=\"Opendoor cut 22% of staff on Tuesday, marking its second round of cuts since November when it cut 18% of its workforce.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2023\/04\/18\/opendoor-cuts-22-of-staff-with-a-new-round-of-layoffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opendoor cuts 22% of its staff in new round of layoffs\" \/>\n<meta property=\"og:description\" content=\"Opendoor cut 22% of staff on Tuesday, marking its second round of cuts since November when it cut 18% of its workforce.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2023\/04\/18\/opendoor-cuts-22-of-staff-with-a-new-round-of-layoffs\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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