Opendoor Board Chair Proposes Radical 85% Workforce Cut Amid AI Revolution

Opendoor Board Chair Suggests Cutting Workforce by 85 Percent Amid AI Advancements Keith Rabois, chair of Opendoor's board, sparked controversy on CNBC's Squawk on the Street when he revealed his thoughts on the company's workforce. According to a recent interview, Rabois believes that nearly all of Opendoor's employees could be let go. "We have 1,400 employees at Opendoor," Rabois said. "I don't know what most of them do. We don't need more than 200 of them." He attributed this drastic reduction to the advancements in artificial intelligence (AI) and other technologies. Opendoor's current workforce consists of approximately 1,400 employees. The company has seen significant growth in recent years, with its stock price increasing by 500 percent in 2025. However, this surge appears largely driven by retail investors who have been influenced by online advice from a hedge fund manager. Rabois' comments come as AI and automation continue to transform industries worldwide. Experts warn that the widespread adoption of these technologies could lead to significant job displacement. According to a report by the McKinsey Global Institute, up to 800 million jobs could be lost globally due to automation by 2030. The Opendoor board chair's suggestion has sparked debate among industry insiders and experts. "While AI can certainly augment human capabilities, it is not a replacement for human workers," said Dr. Rachel Kim, an economist specializing in labor markets. "Rabois' comments demonstrate a lack of understanding about the complexities of workforce management." Opendoor has faced criticism in the past for its business practices and treatment of employees. The company's decision to cut its workforce by 85 percent would likely have significant implications for affected employees and local communities. As AI continues to advance, companies like Opendoor will need to adapt their strategies to remain competitive. Rabois' comments serve as a reminder that the future of work is uncertain and requires careful consideration from business leaders and policymakers alike. In response to Rabois' statement, an Opendoor spokesperson declined to comment on potential workforce reductions but emphasized the company's commitment to innovation and employee development. The situation at Opendoor highlights the need for ongoing dialogue about the impact of AI on employment. As automation continues to transform industries, it is essential that companies prioritize responsible workforce management practices and invest in retraining programs for displaced workers. Opendoor's stock price has been steadily increasing since Rabois' comments, with investors seemingly unfazed by the potential implications for employees. However, experts warn that this surge may be short-lived if the company fails to address concerns about its workforce and treatment of employees. The future of Opendoor's workforce remains uncertain, but one thing is clear: the impact of AI on employment will continue to be a pressing concern for businesses and policymakers in the years to come. *Reporting by Gizmodo.*