Opendoor’s New Chairman Critiques Workforce Size
On Friday, Opendoor’s newly appointed chairman, Keith Rabois, referred to the company as “bloated.”
“There are 1,400 employees at Opendoor, and frankly, I’m not sure what most of them do. We probably don’t need more than 200,” Rabois stated during an appearance on CNBC’s “Squad on the Street.”
Rabois is a notable member of Silicon Valley’s “Paypal Mafia,” a group that includes personalities like Elon Musk and Peter Thiel. He recently returned to Opendoor following the appointment of former Shopify executive Kaz Nejatian as CEO.
Nejatian took over from Carrie Wheeler, who left her position on August 15 after Rabois and hedge fund manager Eric Jackson pressed for her removal after three years at the helm.
In a post on X, the outgoing CEO mentioned that expediting her succession plan was “the best thing I can do for Opendoor now.”
This leadership change coincided with a significant increase in Opendoor’s stock price, which has surged more than sixfold since June, largely due to retail investors responding after Jackson suggested the stock could be a “100 bagger.”
Opendoor’s share prices had previously plummeted by 99% from their peak following its SPAC launch in 2020, though this year’s focus on retail investors and activists has intensified.
However, investor confidence has taken a hit due to recent revenue reports that indicated a decrease in home acquisitions without any clear improvements.
After Rabois’s return was announced, shares initially rose by 78% on Thursday but then fell by over 12% the following day.
Despite these fluctuations, stocks have increased nearly 500% in 2025.
Rabois criticized the company’s culture as “broken” due to remote work, arguing for a return to in-person collaboration. “The company was built on innovation and teamwork. We’re going back to those roots,” he told CNBC.
Rabois also pointedly critiqued Opendoor’s current state, saying, “We’ll fix it all going forward.”
Opendoor, often labeled as an “Ibuyer,” provides homeowners with quick cash offers, avoiding the lengthy traditional selling process.
The company’s primary business model involves purchasing homes directly, renovating them, and then reselling for profit, while also charging a service fee like that of conventional real estate firms.
In addition to its core model, Opendoor has branched out into mortgage lending, title services, escrows, and guarantees to capture more transactions.
New offerings such as “Cash Plus” and collaborations with local agents aim to create more adaptable sales options for consumers.
Opendoor heavily relies on its algorithms and AI technologies for managing home pricing and associated risks, forming the basis of its strategy.
Compensation for software engineers at Opendoor varies significantly, starting from around $180,000 for entry-level positions and reaching up to $728,000 for senior roles, with a median salary of about $240,000.
The average total pay across the company lands at approximately $287,000, mostly within the range of $225,000 to $619,000, and top positions could earn up to $747,000.
Comments have been requested from Opendoor regarding these developments.
