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Opendoor Technologies (NASDAQ:OPEN) is laying off a significant chunk of its workforce due to housing demand slowdown, according to a blog post from its chief executive.
CEO Eric Wu indicated in the post that the San Francisco-based digital real estate platform is set to layoff about 550 people across all functions, representing about 18% of the company’s total headcount.
“The reality is, we’re navigating one of the most challenging real estate markets in 40 years and need to adjust our business,” he wrote on Wednesday. “To manage through the turbulence in the market, we’ve worked quickly over the last two quarters to reduce our operating expenses. Prior to today, we scaled back our capacity by over 830 positions – primarily by reducing third party resourcing – and we eliminated millions of fixed expenses. We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come.”
Shares of Opendoor Technologies (OPEN) fell 2.87% shortly after the midpoint of Wednesday’s trading, adding to an over 80% decline in 2022.
Read more on financial gainers and losers on Wednesday.
