Home News Opendoor lays off about 550 employees, or 18% of its workforce • TechCrunch

Opendoor lays off about 550 employees, or 18% of its workforce • TechCrunch

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Opendoor will sell about 550 people across all functions, or 18% of the company, said co-founder and CEO Eric Wu. blog post today.

This real estate technology company is one of many that had to lay off employees in 2022. better dot com Multiple layoffs, Redfin and Compass in June In total, more than 900 workers will be cut.

Soaring mortgage rates and inflation are the main reasons for the decline in demand that has slowed business for these companies. Opendoor’s Wu said the company is navigating “one of the toughest real estate markets he’s had in 40 years.”

In his blog post, the executive said his company has been working to reduce operating costs over the past two quarters. he wrote: We didn’t make the decision to scale the team down lightly today, but to ensure that we can accomplish our mission for years to come. ”

Affected employees will receive 10 weeks of severance pay, plus an additional two weeks of salary for each year beyond their two-year tenure. All current medical benefits are in effect for the remainder of the month, after which she will have Opendoor pay her three months of health insurance premiums.

The company also plans to offer “replacement support” and launch an opt-in talent directory to help laid-off team members “connect with new opportunities.”

Opendoor was launched in late December 2020. planned merger Together with SPAC Social Capital Hedosophia Holdings II, led by investor Chamath Palihapitiya. The 8-year-old company first went public at $31.47 per share. As of today’s writing, stocks were traded At $2.48, it’s only slightly higher than the company’s 52-week low of $2.26. This means the company’s valuation is just $1.56 billion from his $8 billion in 2021.

When it comes to venture capital, Opendoor last raised $300 million. $3.5 billion pre-money valuation Over time, we’ve raised about $1.3 billion in equity financing and about $3 billion in debt financing to finance home purchases. The company’s investors include General Atlantic, SoftBank Vision Fund, NEA, Norwest Venture Partners, GV, GGV Capital, Access Technology Ventures, SV Angel and Fifth Wall Ventures.

Founders include Eric Wu and Founders Fund General Partner Keith Rabois.

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