K
eith Rabois, Opendoor’s co‑founder and new board member, told CNBC that the company’s 1,400‑person workforce is “bloated” and that only about 200 employees are truly needed. He added that Opendoor must “return to its roots” and adopt a more disciplined, AI‑first approach.
Rabois re‑joined the board alongside fellow co‑founder Eric Wu after former CEO Carrie Wheeler’s exit. The company has already begun restructuring under new CEO Kaz Nejatian, the former Shopify COO, who was appointed on September 10. Rabois praised Nejatian as the right leader to unlock Opendoor’s data assets and steer the firm back to its original mission.
The turmoil began in late May when Opendoor faced a Nasdaq delisting threat. Activist investors, notably EMJ Capital’s Eric Jackson, pushed for Wheeler’s resignation, and the stock rallied enough to avoid delisting. Wheeler stepped down on August 15, and Nejatian took over the next month.
Rabois said he had not yet examined the financials in detail but noted that Opendoor’s recent earnings show year‑over‑year revenue growth and adjusted EBITDA profitability for the first time since 2022. He emphasized that the company’s general and administrative (G&A) expenses had become unsustainable as interest rates rose and transaction volumes fell. “The bloated G&A made no sense in a high‑rate environment,” he said, noting Nejatian’s track record at Shopify in cutting those costs.
Culturally, Rabois claims Opendoor’s remote‑work model and DEI initiatives have eroded the collaborative spirit that originally drove innovation. “We were founded on in‑person teamwork,” he said. “We’re going to restore that.”
While Rabois hinted at an 85% reduction in staff, he did not commit to specific layoff dates or confirm that cuts will occur. He stated, “I know the strategy; I have a high‑level view of what can be improved. But there’s no way you need 1,400 employees.”
Despite recent setbacks, Rabois remains bullish on iBuying, arguing that it is still a complex but viable business. He cited Zillow and Redfin’s exits from iBuying as evidence of the sector’s difficulty, not its obsolescence. “We give certainty, peace of mind, convenience,” he said, adding that Opendoor’s value proposition is “incredibly compelling” to Americans and that greater awareness is needed.
Opendoor has not yet responded to Real Estate News’ request for comment.
