Opendoor co-founder and newly appointed Board Chair Keith Rabois announced plans for a significant workforce reduction, stating the company needs to cut 85% of its employees. Mr. Rabois indicated that the current workforce of 1,400 could be reduced to fewer than 200 individuals.
Mr. Rabois attributed the need for this drastic measure to a 'bloated' workforce and a 'broken' culture, exacerbated by remote work, which he believes has been a drag on the company's efficiency and cash burn. He emphasized a return to the company's founding principles of in-person innovation and collaboration.
This proposed restructuring is aimed at resolving the company's cash burn and improving its cost structure. The announcement follows the appointment of Kaz Nejatian as CEO and the return of co-founder Eric Wu to the board, signaling aggressive turnaround efforts under new leadership.
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