‘I don’t know what most of them do’ – Business News
Opendoor’s new chairman Keith Rabois blasted the company as “bloated” on Friday — vowing to cut up to 85% of its workers.
“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 instructed CNBC’s “Squawk on the Street” on Friday.
Rabois — a member of Silicon Valley’s famed “PayPal Mafia” that features Elon Musk, Peter Thiel and Reid Hoffman — returned to the online real estate company this week after it put in former Shopify govt Kaz Nejatian as CEO.
Nejatian changed Carrie Wheeler who resigned on Aug. 15 after Rabois and hedge fund supervisor Eric Jackson led a strain marketing campaign to take away her after a three-year stint as chief govt.
Opendoor chairman Keith Rabois referred to as the company “bloated” and vowed to slash 85% of its 1,400 employees. Bloomberg through Getty Images
The ousted CEO stated in a post on X that accelerating her succession plan was “the best thing I can do for Opendoor now.”
Her exit adopted a surge in Opendoor’s stock — up more than sixfold since June — as retail traders piled in after Jackson touted the shares as a potential “100-bagger.”
Opendoor’s stock — which went public in 2020 through a SPAC earlier than crashing 99% from its peak — has roared back this yr, fueled by retail traders and activist strain.
But investor unrest intensified when Opendoor’s newest earnings confirmed declining home acquisitions and no clear turnaround.
Shares soared 78% on Thursday after Rabois’s return and Nejatian’s set up as CEO have been introduced, earlier than sliding more than 12% on Friday.
“We don’t need more than 200 of them,” Rabois instructed CNBC about Opendoor’s workers. Getty Images for Hill & Valley Forum
Even with the pullback, the stock stays up almost 500% in 2025.
Rabois stated Opendoor’s tradition was “broken” by distant work, insisting the company should return to in-person collaboration.
“This company was founded on the principle of innovation and working together in person. We’re going to return to our roots,” Rabois instructed CNBC.
Rabois additionally criticized Opendoor for going “down this DEI path,” including, “We’re gonna fix all that.”
Opendoor is a real estate technology company often known as an “iBuyer,” offering householders immediate money presents to sell their properties shortly with out the normal itemizing course of.
Its fundamental business model is shopping for properties immediately, making repairs, and reselling them for a revenue, whereas additionally charging service charges much like real estate commissions.
Opendoor is an “iBuyer” that gives householders fast money gross sales with out conventional listings. Tada Images – stock.adobe.com
The company has expanded into associated companies resembling mortgage lending, title, escrow and warranties to seize more of the transaction.
It can be developing new merchandise like “Cash Plus” and partnerships with native brokers to supply more versatile promoting choices.
Opendoor depends closely on proprietary algorithms and AI to price properties and handle risk, making knowledge central to its strategy.
Opendoor software program engineer compensation ranges from $180,000 at entry degree to $728,000 at senior ranges, with a median of about $240,000, in response to Levels.fyi.
The average complete compensation on the company stands at $287,000, with most salaries between $225,000 and $619,000, and high roles reaching $747,000, 6figr estimates.
The web web site Comparably lists average pay at $143,000, with division medians of $170,000 in operations and $177,000 in product.
The Post has sought remark from Opendoor.
