Opendoor co-founder and newly minted board chair Keith Rabois mentioned distant work and a “bloated” workforce have been a drag on the corporate’s tradition, as he vowed to slash headcount.
“There’s 1,400 staff at Opendoor. I do not know what most of them do. We do not want greater than 200 of them,” Rabois instructed CNBC’s “Squawk on the Road” on Friday.
The net actual property platform on Wednesday appointed former Shopify government Kaz Nejatian as its new CEO after investor stress triggered his predecessor, Carrie Wheeler, to resign final month. Opendoor additionally named Rabois as chairman and mentioned Eric Wu, who served as the corporate’s first CEO earlier than stepping down in 2023, would return to the board.
The announcement despatched Opendoor shares hovering 78% on Thursday, earlier than the inventory slid greater than 12% on Friday. It is nonetheless up virtually 500% this yr, after a military of retail buyers pushed up the inventory worth when hedge fund supervisor Eric Jackson started touting the corporate.
Opendoor year-to-date inventory chart.
Opendoor’s enterprise entails utilizing expertise to purchase and promote properties, pocketing the positive aspects.
Nothing basically improved for the corporate since Jackson purchased shares of Opendoor in July. Opendoor stays a cash-burning, low-margin enterprise with meager near-term progress prospects.
Rabois mentioned he has a “excessive stage view of the technique” that is wanted to rework Opendoor, and that the headcount reductions are essential to resolve the corporate’s money burn.
“The tradition was damaged,” Rabois mentioned. “These individuals have been working remotely. That does not work. This firm was based on the precept of innovation and dealing collectively in particular person. We will return to our roots.”
He added that Opendoor “went down this DEI path,” referring to range, fairness and inclusion.
“We’re gonna repair all that,” Rabois mentioned.