Opendoor’s stock boom may have been a rewarding one for employees, but the company’s plans for the future bring ominous tidings. Opendoor’s workforce is bloated, according to chairman and co-founder Keith Rabois. Hinting that job cuts are incoming, Opendoor’s chairman indicated that the current headcount of 1,400 workers was far beyond what the company needed, adding that the business could afford to whittle itself down to 200 employees. Could Opendoor cut 85% of its staff in the near future? That appears to be a distinct possibility, however, there is no indication that the business has set down this path just yet.
Opendoor’s workforce is bloated, according to Chairman Rabois, and plans for downsizing from 1,400 to 200 employees could be on the horizon. (Image: Freepik)
Opendoor’s Workforce Is Bloated, According to the Chairman Rabois
“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 told CNBC last week. While the claims of not knowing what the employees do reflect more on the company than its workers, there has been a general trend of reorganization among prominent businesses, with the intention of shaking up the organization and flattening its hierarchical structure to better performance.
Opendoor’s goal to scale down from 1,400 to 200 employees is quite an ambitious one, but it isn’t yet apparent if this is an actual strategy the company is set to adopt. With the rise of AI employees and digital replacements for workers, the business could very well consider scaling down its workforce, but there are expected to be delays in unleashing such a dramatic change.
Is Opendoor Set to Cut 85% of Its Staff? Not Yet
For now, Rabois’ bold claims appear to be more of an idea than a legitimate strategy, but this could change in the near future. He also turned to remote work and DEI efforts for the “broken” culture at the organization. “We’re going to fix all that. We’re back to merit and excellence,” Rabois added in his statement.
A shift to a full-time return to in-person work would not be far-fetched, as many businesses have turned to a similar strategy this year. For many of these companies, voluntary attrition through RTOs has been a goal, however, there has been an equal emphasis on reviving the company culture to ensure better performance at the organization.
The company has recently undergone significant change, particularly with the ousting of CEO Carrie Wheeler, who was soon replaced by former Shopify executive Kaz Nejatian. The change in leadership will result in further adjustments to ensure the company’s operations align with the business decisions of the new CEO. This shift could soon be accompanied by some job cuts. While it’s true that Opendoor’s workforce may be bloated, the plan to cut 85% of staff remains a theoretical one.
Does Your Workforce Also Feel Bloated?
The Opendoor job cuts may be incoming, but have you felt similarly about your own organization? The pandemic hiring surge left many businesses with more than their fair share of hands on the job, but more recently, organizations have begun to find that their forces far exceed their needs. This goes beyond a struggle to remember each employee’s name. It links back to the problem of overly complex jobs and highly layered bureaucratic channels.
Layoffs have been a primary solution to this problem, eliminating workers in larger numbers than ever. However, it does not have to be the ultimate answer to a bloated workforce every time. Evaluating the role of each employee in the organization and gaining a better understanding of their skill sets provides a vital opportunity to channel their skills into other areas of the organization. This helps with the internal circulation of talent and ensures that the investments that are made into the employee’s growth continue to benefit the business.
Not only does this help broker a better relationship with workers, but it also makes them more receptive to the other cultural changes that are on their way. With the talent market full of workers uncertain about their place in the workforce, retention can offer reap better results than the culling of the workforce. While we wait to see whether Opendoor truly downsizes from 1,400 to 200, there are a lot of resources around to better understand how you can manage your workforce and set your sights on unity and productivity.
What do you think about Opendoor’s claim that its workforce is bloated and could function better with just 200 employees? Share your thoughts with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.