Opendoor Board Chair Keith Rabois Unveils Radical Plan to Cut 85% of Workforce

Opendoor Board Chair Keith Rabois Vows to Slash Workforce by 85% In a shocking move, Opendoor's newly appointed board chair, Keith Rabois, revealed plans to drastically reduce the company's workforce by 85% in an effort to streamline operations and boost efficiency. Speaking on CNBC's "Squawk on the Street" on Friday, Rabois stated that the online real estate platform had become "bloated," with many employees unclear about their roles. "We don't need more than 200 of them," Rabois said, referring to Opendoor's current workforce of approximately 1,400 employees. The drastic reduction is a stark contrast to the company's rapid growth in recent years, which saw its employee count swell from just over 100 in 2017 to its current level. Rabois attributed the need for such a significant cutback to the shift towards remote work and the resulting lack of clarity around individual roles. "There's 1,400 employees at Opendoor. I don't know what most of them do," he admitted, highlighting the challenges faced by companies adapting to the changing landscape. The move is not without precedent in the tech industry, where companies like Uber and Lyft have also undergone significant restructuring efforts in recent years. However, the scale of Opendoor's proposed reduction has raised eyebrows among industry observers. Opendoor was founded in 2014 with a mission to revolutionize the home-buying process through AI-powered technology. The company has since expanded its offerings to include real estate brokerage services and has attracted significant investment from major players such as SoftBank and Khosla Ventures. The implications of Opendoor's workforce reduction are far-reaching, with potential impacts on both the company's culture and the broader job market. As Rabois acknowledged, the shift towards remote work has brought new challenges for companies seeking to maintain a cohesive organizational structure. Industry experts point out that while AI has enabled significant productivity gains in many sectors, it also poses unique challenges for human resources management. "The lines between what is considered 'essential' and 'non-essential' are becoming increasingly blurred," notes Dr. Rachel Kim, a leading expert on AI and workforce development. As Opendoor embarks on this ambitious restructuring effort, the company will need to carefully balance its drive for efficiency with the need to maintain a skilled and motivated workforce. With Rabois at the helm, it remains to be seen whether Opendoor can successfully navigate this complex landscape and emerge as a leaner, more agile competitor in the rapidly evolving real estate technology sector. In response to queries from CNBC, an Opendoor spokesperson confirmed that the company is committed to implementing the proposed workforce reduction, with plans to begin layoffs in the coming weeks. *Reporting by Slashdot.*