Opendoor cuts 18% of its workforce - RealTrends

Slowing lodging marketplace conditions are catching up with Opendoor. The iBuyer announced connected Wednesday that it is laying disconnected 550 employees, oregon astir 18% of the company.

The company’s laminitis and CEO, Eric Wu, wrote successful a blog post that the workforce cuts were owed to “navigating 1 of the astir challenging existent property markets successful 40 years” and that they “need to set [their] business” successful response.

Wu besides noted that the steadfast had antecedently scaled backmost its capableness by implicit 830 positions, “primarily by reducing 3rd enactment resourcing.” In addition, Wu wrote that Opendoor had already eliminated “millions of fixed expenses.”

“To negociate done the turbulence successful the market, we’ve worked rapidly implicit the past 2 quarters to trim our operating expense,” Wu wrote.

Employees were informed of their presumption astatine the institution via email. Impacted workers volition person 10 weeks of severance wage positive an further 2 weeks wage for each afloat twelvemonth beyond 2 years of tenure. They volition besides person wellness attraction benefits done the remainder of the period and for 3 further months on with occupation modulation support.

This announcement came conscionable 1 time earlier Opendoor is acceptable to denote its 3rd 4th 2022 earnings. That announcement is slated to hap connected Thursday.

According to information from YipitData, Opendoor mislaid wealth connected 42% of its transactions successful August, arsenic the firm’s buy-to-sale premium, besides known arsenic the quality betwixt the terms it buys properties astatine and the price it sells them for, dipped beneath 0%. Earlier successful the twelvemonth it deed a highest of 12%.