Opendoor Chairman Keith Rabois Plans Massive Layoffs: Report

Opendoor Technologies Inc. (OPEN) co-founder and newly appointed board chairman Keith Rabois has reportedly pledged to reduce the firm’s workforce, describing the current team as bloated and disconnected from the company's original mission.

“There’s 1,400 employees at Opendoor. I don’t know what most of them do. We don’t need more than 200 of them,” Rabois said, according to a CNBC report.

 Opendoor Technologies’ stock traded over 12% lower on Friday afternoon. On Stocktwits, retail sentiment toward the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels. 

Rabois made it clear that he intends to steer Opendoor away from its current course, stating that the company has lost its way as it has embraced remote work and grown disconnected from its founding principles, according to the report. He also criticized its focus on diversity, equity, and inclusion, stating, “We’re gonna fix all that.”

Rabois added that cutting staff is a necessary step toward addressing the company’s ongoing cash burn. 

Opendoor stock hit its highest level in more than three years on Thursday, after the company named former Shopify executive Kaz Nejatian as its new CEO. 

Meanwhile, in addition to Rabois’ elevation to board chair, founding CEO Eric Wu will also return as a board member. The new appointments are a significant win for EMJ Capital's Eric Jackson and the company’s investors, who have been advocating for the changes for months. Pressure from investors had led to the resignation of former Opendoor CEO Carrie Wheeler last month.

The stock has gained over 468% year-to-date and 314% in the last 12 months.

Also See: Why Did IonQ Stock Rocket 16% Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.