New Delhi: Real estate tech firm Opendoor has announced that it will discontinue operations in India and has laid off almost 250 staff. The decision, part of an overall restructuring initiative, will be designed to simplify the company’s business, boost the application of artificial intelligence (AI), and move relevant operational roles near its customers in the United States market, the company said.
Opendoor CEO Kaz Nejatian made the announcement in an internal memo sent to employees. Some positions were already transferred back to the United States in the course of the last few months and with its latest decision, the company’s decision can now formally be described as a complete move back to the US. However, Opendoor has now officially said that it will cease its operations in India altogether, Opendoor stated.
Founded in 2014, Opendoor is known for its “iBuying” business model, where it uses technology and data analytics to make instant cash offers to homeowners. The company purchases the housing units from the owner and sells them on to the earlier owner. Digital addresses home selling and mortgage needs in multiple markets around the globe, including the USA.
The company said it was not based upon employee performance. The management has highlighted its India team and said its team excelled in its Memo. Opendoor says that most of the operations it has left can be done more efficiently by smaller teams that are near its customers in the US, however. This transformation has been made possible by means of technology systems that have improved and the increased adoption of AI-powered technology.
Severance packages, outplacement services, and transition support will be provided to those who have been negatively affected to assist them in finding new opportunities. The key employees will remain onsite temporarily to help move assets and processes associated with core business activities to the new India locations, until the India operations are completely closed.
The relocation is part of Opendoor’s “Opendoor 2.0” plan, which includes streamlining, eliminating manual work and introducing automation and AI to increase productivity. The company will work with lowered budget and still be able to provide an efficient service and maintain high standards of customer service.
With many global tech giants mustering a workforce and ramp up investments in AI-powered solutions, Opendoor’s decision to shut down operations in India is timely. The decision will impact hundreds of Indian workers, but it also demonstrates the way companies are remodeling themselves to fit changing technologies and requirements.
