Opendoor has laid off its entire India team, affecting around 250 employees in total as it builds leaner AI-native teams on its home turf
Opendoor has unified its manual workflows that were earlier handled by offshore Indian employees, and hired small AI-native teams for customer facing roles
The company expanded its operations in India less than two years ago when it opened new offices in Hyderabad and Bengaluru
US-based proptech company Opendoor has laid off its entire India team, affecting around 250 employees in total as it builds leaner AI-native teams on its home turf.
“We are finalising bringing these (India-based) roles closer to our customers in America and beginning the process of winding down our India-based operations. This affects all of our colleagues in India who have done meaningful work for Opendoor,” CEO Kaz Nejatian said on X.
The executive noted that the company has unified its manual workflows that were earlier handled by offshore Indian employees, and hired small AI-native teams for customer facing roles which would operate better closer to its customer base in the US. Notably,
Opendoor will provide severance packages, outplacement services and other resources to affected employees in India, he said, without specifying details. A small subset of the team will stay on till the transition is complete.
Notably, the company is currently “expanding operations” in the EU. It has a substantial employee presence in Poland and Canada, but it is unclear if those geographies were affected by current or previous layoffs.
Nejatian noted that going forward, Opendoor will stop stacking manual workflows on top of point-solutions tools and instead be mindful of the processes being integrated into its business.
Opendoor was backed by the likes of Sam Altman, Khosla Ventures, General Atlantic, SoftBank Vision fun, and Andreessen Horowitz before it went public in 2020.
The company expanded its team in India in 2024 and opened new offices in Hyderabad and Bengaluru. However, calls to reduce dependence on Indian IT workers and prioritise domestic hiring in the US have gained momentum over the past two years, with both onshore and offshore technology sector employees facing visa cancellations and layoffs.
Notably, Nejatian is a Canadian citizen and was under the process of obtaining work authorisation from the US at the end of 2025.
The announcement comes at a time when rising automation due to rapid adoption of generative and agentic AI has also led to thousands of layoffs globally across tech companies, including India.
Opendoor, which buys and resells residential real estate across the US, has been facing turmoil in recent years due to a slowdown in the real estate market owing to high mortgage rates and stagnant paychecks, which is a risk factor as per the company in its quest to achieve profitability.
Moreover, its real estate inventory has been facing price fluctuations, including a $57 Mn markdown in 2025, leading to increased operational losses. Opendoor has also listed a “failure to realise anticipated efficiencies through our leveraging of AI, technology, business model and cost management strategies” as a risk factor to its growth in the future. While it introduced Opendoor 2.0 policy to restructure its inventory and operational costs, it has increased pressure on the company’s balance sheet.
In the quarter ended March 31, 2026, Opendoor reported a revenue of $720 Mn, down 37.5% from $1.15 Bn reported in the year-ago quarter. At the same time, its net loss during the quarter more than doubled YoY to $173 Mn.
During the quarter, Opendoor also incurred $3 Mn in restructuring costs, paid toward post-employment benefits of 65 terminated employees. At the same time, it awarded $15 Mn as a cash award to Nejatian upon his appointment last September.
The company has taken a number of steps over the past couple of years to cut costs amid falling revenue. In November 2024, it reduced its workforce by 17%, affecting 300 employees, costing it a total of $10 Mn in restructuring costs. It also laid off around 680 employees in 2023 and another 125 in 2025, according to filings with the SEC.
In the third quarter of 2025, the company said it reduced its costs pertaining to external software, software vendors, and external consultants to increase its operational savings.
Source: Inc42 - Startups
