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Real estate tech company Opendoor lays off nearly a quarter of staff

An office space sits empty in Downtown San Francisco. | Camille Cohen/The Standard

Real estate technology company Opendoor is cutting around 560 positions, roughly 22% of its staff, amid growing losses and a declining share price.

The layoffs represent the second major headcount cut at the company since November when Opendoor cut 550 jobs.

Opendoor was founded in 2014 by a group including Keith Rabois, Eric Wu and JD Ross. Wu stepped down as CEO in November and was replaced by Carrie Wheeler when the company announced its last round of layoffs.

The company was based in San Francisco for much of its history before moving its base of operations to Arizona in 2020.

"We're taking these actions now to better align our operational costs with the anticipated near-term market opportunity," the company said in a statement confirming the layoffs to The Standard.

Opendoor reported a $1.4 billion loss in 2022, more than double the $663 million it lost in 2021. The company purchased nearly 2,000 fewer homes last year compared with 2021.

The company went public through a special purpose acquisition company (SPAC) merger in 2020 and has seen its stock price steadily slide after peaking in 2021. Opendoor's share price has declined by more than 85% from its opening price three years ago.

Last year, the company agreed to a $62 million settlement with the Federal Trade Commission over allegations that it overpromised to consumers in its outreach in advertising.

Opendoor is known in the real estate industry as an iBuyer, a company that bypasses the traditional listing process for selling homes by using technology to make instant offers. Opendoor then flips those properties for a profit.

Opendoor has been hit hard by rising mortgage rates, which have made lending more expensive and slowed the pace of home sales.

A number of tech companies have decided to cut jobs in recent months in response to the changing economic environment, including Lyft, Meta and Glassdoor.

Kevin Truong can be reached at kevin@sfstandard.com