Opendoor’s new chairman, Keith Rabois, has taken a strong stance regarding the company’s workforce, labeling it as “bloated” and indicating plans to reduce its headcount by up to 85%. Currently, Opendoor employs around 1,400 individuals, but Rabois has expressed skepticism about the necessity of most roles, asserting that the company could operate effectively with just 200 employees.
Rabois, a prominent figure in Silicon Valley known for being part of the “PayPal Mafia” alongside notable entrepreneurs like Elon Musk and Peter Thiel, returned to the online real estate platform this week following the appointment of Kaz Nejatian as CEO. Nejatian stepped into the role after Carrie Wheeler resigned on August 15, a move that followed pressure from Rabois and hedge fund manager Eric Jackson to oust her after three years at the helm.
In a statement posted on social media, Wheeler noted that accelerating her succession plan was in the best interest of Opendoor at this juncture. Her departure came on the heels of a dramatic increase in Opendoor’s stock price, which has surged more than sixfold since June as retail investors responded to Jackson’s enthusiastic endorsements, labeling the stock as a potential “100-bagger.”
While Opendoor’s stock has experienced a resurgence this year, it previously plummeted by 99% from its peak since going public in 2020 through a special purpose acquisition company (SPAC). The latest earnings report, however, raised concerns among investors due to a downturn in home acquisitions and a lack of a clear turnaround strategy.
Although shares jumped 78% following Rabois’s return and Nejatian’s appointment, they took a dip of over 12% the following day, despite remaining up nearly 500% in 2025. Rabois remarked on the company’s current culture, criticizing the impacts of remote work and emphasizing a need for a return to in-person collaboration: “This company was founded on the principle of innovation and working together in person. We’re going to return to our roots.”
The chairman also took issue with the company’s focus on diversity, equity, and inclusion (DEI) initiatives, stating, “We’re gonna fix all that.”
Opendoor operates as an “iBuyer,” allowing homeowners to sell their properties quickly by providing immediate cash offers without going through traditional listing processes. The company’s primary business model involves purchasing homes, performing necessary repairs, and reselling them for profit, alongside charging service fees akin to real estate commissions.
To expand its reach, Opendoor has been venturing into related services such as mortgage lending, title services, escrow, and warranties. It has also introduced new offerings like “Cash Plus” and formed partnerships with local agents to provide diversified selling options.
The company heavily leverages proprietary algorithms and AI technologies to efficiently price homes and mitigate risks, highlighting the central role that data plays in its operational strategy. Compensation for software engineers at Opendoor has been reported to range from $180,000 for entry-level positions to as high as $728,000 for senior roles, with a median salary around $240,000. Overall, the average total compensation within the company is close to $287,000, with most salaries ranging between $225,000 and $619,000.
As the company undergoes these significant changes, the future direction and structure of Opendoor remain uncertain, prompting ongoing scrutiny from investors and market analysts.
