Layoffs 2022
According to Bloomberg, the layoffs will lessen Opendoor’s headcount by approximately 18%, in line with a organisation weblog publish. The cuts come after an abrupt shift in charges forced the agency to sell homes for much less than it paid for them.
“The truth is, we’re navigating one of the maximum challenging real property markets in forty years and want to alter our enterprise,” Chief Executive Officer Eric Wu wrote. “To manage through the turbulence in the marketplace, we’ve worked speedy during the last quarters to lessen our working prices.”
Opendoor, which practices a facts-pushed spin on home-flipping called iBuying, turned into among organizations stuck by means of a sudden flip within the housing market as soaring borrowing prices driven some customers to the sideline. The iBuying model relies on acquiring houses, making a few upkeep after which selling the properties, regularly in a quick period of time.
The company sought to reduce tens of millions of fixed costs in advance this 12 months as it navigated the market’s shift, Wu said inside the weblog put up. Employees will acquire as a minimum 10 weeks of severance pay.
“We did now not make the choice to downsize the crew these days gently,” Wu stated.
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