Opendoor’s New Chairman Says He Will Cut Up to 85% of Workforce, Calls Company ‘Bloated’

Opendoor’s newly installed chairman, Keith Rabois, told CNBC on Friday that he plans to cut as many as 85% of the company’s employees, calling the residential real estate technology firm “bloated.” Rabois said the company’s roughly 1,400 employees could be pared to about 200, asserting, "I don't know what most of them do. We don't need more than 200 of them."

Rabois returned to the company this week as Opendoor installed former Shopify executive Kaz Nejatian as chief executive. Nejatian replaced Carrie Wheeler, who resigned on Aug. 15 after an activist pressure campaign led by Rabois and hedge fund manager Eric Jackson. The leadership changes followed a sharp rally in Opendoor shares this year and investor frustration over recent earnings that showed declining home acquisitions and no clear turnaround in the business.

The company, founded as an “iBuyer” that makes instant cash offers to homeowners, buys properties directly, performs repairs and resells them, while also collecting fees that resemble commissions. Opendoor has expanded into mortgage lending, title, escrow and warranty services and has developed products such as “Cash Plus” and partnerships with local agents to broaden selling options. The business relies heavily on proprietary algorithms and artificial intelligence to price homes and to manage acquisition and resale risk.

Opendoor went public in 2020 via a special purpose acquisition company and subsequently saw its stock plunge about 99% from the peak. The shares have since rebounded sharply in 2025 amid heavy retail investor activity and activism; they rose more than sixfold since June and were up nearly 500% so far this year even after a pullback. Eric Jackson has publicly promoted the shares as a potential “100‑bagger.” The company’s stock jumped 78% on Thursday after Rabois’s return and Nejatian’s appointment were announced, then fell more than 12% on Friday.

Rabois, a member of the so‑called “PayPal Mafia,” criticized Opendoor’s hybrid and remote work practices, saying the company’s culture had been harmed and that it must return to more in‑person collaboration. He also disparaged the company’s previous diversity, equity and inclusion initiatives, saying, "We’re gonna fix all that."

Talent costs are a notable element of Opendoor’s expense base. Publicly available salary data indicate a wide range of compensation: Levels.fyi reports software engineer pay at Opendoor from about $180,000 at entry levels up to $728,000 for senior roles, with a median near $240,000. Other sites report average total compensation figures ranging from roughly $143,000 to nearly $287,000 depending on the source and role, reflecting differences across departments and seniority.

The leadership changes and Rabois’s comments came after Opendoor reported quarterly results that showed a decline in home acquisitions, a key metric for the iBuyer model. Activist pressure and retail investor enthusiasm have collided with operational questions about whether the company can restore consistent volume and margins amid shifting housing market conditions.

Carrie Wheeler posted on X that accelerating her succession plan was “the best thing I can do for Opendoor now.” The company has not publicly outlined a specific timeline for workforce reductions. The New York Post and other outlets sought comment from Opendoor; the company had not responded to requests for further detail by publication.

Investors and analysts will watch for operational plans from Nejatian and the board detailing how any restructuring would be executed and how changes would affect the company’s ability to source, renovate and sell homes. In the near term, market reaction to leadership moves and the potential scale of cuts is likely to remain a key driver of Opendoor’s stock volatility as the company seeks to balance cost reductions with the capital‑intensive nature of its iBuyer model.