Opendoor lays off 300 more workers as losses mount, valuation plummets.

by
Sharing is Caring!

Opendoor, a San Francisco-based real estate tech company, announced on November 8, 2024, the layoff of 300 workers. This follows previous rounds of job cuts: 550 in November 2022 and 560 in April 2023. The company is struggling to stay afloat amid challenging market conditions, losing $278 million from January to September 2024.

The layoffs are part of a broader reorganization strategy aimed at prioritizing growth initiatives and improving efficiency. Opendoor’s CEO Carrie Wheeler acknowledged that high interest rates have severely impacted the housing market and, in turn, home sales. The company expects to save $50 million annually from these cuts as it seeks to adapt its cost structure.

See also  Over the last five years, only 479,000 U.S.-born workers were added to the U.S. labor force, compared to 3.6 million foreign-born workers, per NFAP.

Opendoor, which was once valued at $18 billion, now faces a dramatic decline in its worth, with its current valuation at just $1.3 billion. Since going public in 2020, the company has struggled to achieve profitability.

1,110: Total layoffs from 2022 to 2023
$278 million: Losses from January through September 2024
$50 million: Expected annual savings from layoffs
$1.3 billion: Current valuation, down from $18 billion at its peak

See also  Unrealized gains and losses securities held by FDIC – insured depository (2008 Financial Meltdown vs COVID vs Now)

Opendoor’s future is uncertain, with continued job cuts and mounting financial struggles. The company is working to adapt to the harsh realities of the real estate market.

Source:

MSN


Views: 80

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.