SoftBank-backed Opendoor has announced a massive layoff, cutting 35% of its employees

Opendoor, the seven-year-old, San Francisco-based company that has from the outset aimed to help people buy and sell homes with the “push of a button” (or nearly), has just laid off more than a third of its staff. According to a statement sent to us by co-founder and CEO Eric Wu, the company has laid…

SoftBank-backed Opendoor has announced a massive layoff, cutting 35% of its employees

Opendoor, the seven-year-old, San Francisco-based company that has from the outset aimed to help people buy and sell homes with the “push of a button” (or nearly), has just laid off more than a third of its staff.
According to a statement sent to us by co-founder and CEO Eric Wu, the company has laid off 600 of its employees, which constitutes 35% of its overall team, says Wu.
Like so many sectors of the economy, the residential real estate market has taken a hit as U.S. residents are asked to stay indoors and all but essential services are shut down in most of the country. (Florida continues to operate by its own rules and yesterday decided that World Wrestling Entertainment is an essential service.)
Home sales haven’t fallen as far or as fast as one might imagine, though that picture is changing as the weeks wear on. According to Realtor.com, the number of U.S. homes for sale declined 15.7% year-over-year in the month of March, with the number of newly listed properties falling by 13.1% the week ending March 21 and by 34.0% for the week ending March 28.
In his statement, Wu didn’t include details regarding the degree to which Opendoor has been impacted by the COVID-19 shutdown, saying only that because the pandemic has “had an unforeseen impact on public health, the U.S. economy, and housing,” the company has “seen declines in the number of people buying, selling, and moving during this time of uncertainty.”
He added that the reduction in force is “necessary to ensure that we can continue to deliver on our mission and build the experience consumers deserve.”
Every company’s management team is handling layoffs differently
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