Proptech company Opendoor lays off 550 workers amid challenging market


proptech platform Opened door has laid off nearly 550 employees, or 18 percent of its workforce, as the real estate technology company navigates “one of the most challenging real estate markets in 40 years.”

CEO and co-founder of the company Eric Wue said in a blog post that prior to the new round of firing, they had scaled back their capacity by more than 830 positions — primarily by reducing third-party resources — and eliminating millions of fixed costs.

“We’ve made the difficult decision to reduce our team of 550 people in all positions — about 18 percent of the company,” Wu said late Wednesday.

Affected employees will receive 10 weeks of severance pay, with an additional two weeks’ pay for each full year after two years of employment.

“All current health care benefits will remain active for the rest of the month, after which we pay three months of health insurance,” Wu says.

Opendoor went public at the end of December 2020 after the completion of the merger with the SPAC Social Capital Hedosophia Holdings II.

The company was last valued at just $1.56 billion, up from a valuation of $8 billion in 2021.

Opendoor said it will provide job switching support and launch an opt-in talent list to help outgoing team members connect with new opportunities.

The company last raised $300 million against a pre-money valuation of $3.5 billion in March 2019.

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