US-based real estate technology company Opendoor to shut its operations in India, 250 to lose job, Is AI responsible? What did company's CEO said?
US-based real estate technology company Opendoor has announced the closure of its operations in India. This decision will result in the loss of approximately 250 jobs. Announcing the move, CEO Kazz Nejatian stated that, as part of its business transformation strategy, the company is shifting operational roles closer to its customers in the United States.
In a note shared with employees—and subsequently posted on X—Nejatian mentioned that the company had already begun shifting certain roles back to the US over the past few months. This latest move will complete the process and lead to the shutdown of Opendoor's India operations.
What did the Opendoor CEO say?
Explaining this decision, the company's CEO stated that Opendoor's customers are based in the US, and the operational work supporting them is best handled in close proximity to those customers. He further noted that while the company had previously built a large team in India to manage manual workflows across various systems, advancements in technology and the introduction of AI-enabled teams in the US have reduced the need to keep those operations offshore.
Employees to Receive Transition Support
Nejatian emphasized that this decision was not linked to the performance of the team working in India. He praised the contributions of the Indian employees, describing them as talented professionals who would be valuable assets to other organizations. The company stated that affected employees would receive transition support, including severance packages, outplacement services, and other resources. Some staff members will remain for a period to assist with the transition of essential tasks.
‘No Impact from Workforce Reduction’
Despite the workforce reduction, Nejatian stated that Opendoor remains in a strong position and there has been no change to its overall business strategy. He further added that the company aims to streamline operations, build a unified platform, and reduce reliance on manual processes as it continues to focus on serving homeowners in the United States.