Open -handed Co -founder and newly shaped CEO Keith Rabois said that remote work and a “bloated” workforce were a draw in the culture of the company when he swore to reduce the peculiarity.
“There are 1,400 employees in Opendoor. I don't know what most of them do. We don't need more than 200 of them,” Rabois told CNBCS “Squawk on the Street” on Friday.
The online real estate platform appointed on Wednesday Shopify The Executive KAZ NEJIAN as the new CEO after the investor's pressure had resigned its predecessor Carrie Wheeler last month. OpenDoor based in San Francisco, also called Rabois as chairman, and said Eric Wu, who was the first CEO of the company before returning in 2023, would return to the board.
In the announcement, the OpenDoor shares rose by 78% on Thursday before the share withdraws by more than 13% on Friday. This year it has still increased by almost 500% after an army of retail investors had increased the share price when Hedge fund manager Eric Jackson began to display the company.
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OpenDoor share diagram.
The Opendoor business includes the use of technology for buying and selling houses and places the profits.
Nothing has improved fundamentally for the company since Jackson bought stocks from OpenDoor in July. OpenDoor is still a business with cash burning with low margin business with lean short -term growth prospects.
Rabois said he had a “high view of the strategy” required for the transformation of OpenDoor and that the reductions of employees are necessary to solve the company's money burning.
“The culture was broken,” said Rabois. “These people worked from afar. This does not work. This company was founded according to the principle of innovation and worked together personally. We will return to our roots.”
He added that OpenDoor “went down” and refers to diversity, justice and inclusion.
“We'll repair it all,” said Rabois.
Nejian said on Friday in a post on X that he can start personally at the beginning of next week.
“Yes. I will be the first to be in the office every Monday morning on Monday morning,” he wrote.