Opendoor CEO Eric Wu image: Opendoor

According to a piece from Bloomberg, Opendoor — a home flipping startup valued at $3.8 billion — began cutting headcount last month, with nearly 50 of its roughly 1,300 employees affected by job cuts. Bloomberg reports Opendoor began firing almost 50 employees in June and has also asked between 200 and 300 employees in offices across the U.S. to relocate to its Phoenix, Arizona office.

The employees will have an ultimatum of between six to nine months to choose to either make the move or leave Opendoor, Bloomberg reports. Opendoor has also been reported to have ended free lunches for employees in its offices, but a company spokeswoman — in a statement to Bloomberg — says the company will make provision for subsidized lunches in all of its offices with more than 100 personnel.

An Opendoor personnel (right) speaks to a customer image: Opendoor

The spokeswoman also said that Opendoor plans to double the number of employees in its Phoenix office to more than 500 by next year and noted that the total value of homes sold by Opendoor rose more than 150% last year. If Opendoor maintained the level of transactions it made this May, the company would be on track to sell $5 billion worth of houses over the next 12 months, she said.

Opendoor has raised $1.3 billion in equity funding and an additional $3 billion in debt financing for its capital intensive business. Investors in the company include the Softbank Vision Fund, Andreessen Horowitz, Khosla Ventures, Coatue Management, NEA, Lennar Corporation, GGV Capital and  General Atlantic.

In recent months, the home flipping company has lost some key executives, including co-founder JD Ross, CFO Jason Child and vice president of engineering, Bali Raghavan.

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print