Opendoor is “relocating” about 260 operational positions from markets around the country to Phoenix, where the iBuyer first began buying and reselling homes in 2014.

Opendoor is relocating approximately 260 operational positions from markets around the country to Phoenix and had begun letting go nearly 50 employees last month, Inman has learned.

An Opendoor spokesperson confirmed the consolidation in Phoenix, where the iBuyer first began buying and reselling homes, adding that it will allow the startup to better serve and lower costs for customers. The company will continue to hire new employees across all of its markets, the spokesperson added.

Employees currently holding those 260 positions have been given an opportunity to relocate to Phoenix and will be given between six and nine months to either move or leave the company, according to sources who spoke to Bloomberg.com. Additionally, the news outlet revealed that a specific perk offered to all employees — free lunch — has been eliminated.

“We made these changes to drive efficiency and improve the customer experience while lowering cost to transact so people can easily move,” the spokesperson said, when Inman asked about reports of layoffs, relocations and benefits cuts. “It was not a way to trim staff or cost cut.”

Opendoor did not directly confirm or deny to Inman whether the consolidation involves any layoffs or the elimination of any positions. “We are centralizing, automating and consolidating certain operational roles for efficiency and to provide an even better experience for our customers at a lower cost,” a spokesperson told Inman in a statement.

But sources told Bloomberg that Opendoor had begun letting go 50 of its staff in early June.

As for the free lunch, a spokesperson told Bloomberg it will offer, instead, subsidized lunches at all offices exceeding 100 employees while continuing to offer other benefits.

“We provide benefits — spanning parental leave, medical coverage, a growth fund and other perks — that exceed those found across the market,” the spokesperson said in a statement to Bloomberg.

opendoor eric wu

Opendoor CEO Eric Wu | Credit: Opendoor

The shakeup comes as Zillow Offers, Zillow Group’s iBuyer, continues to gain ground on Opendoor as measured by listing inventory — although Opendoor still owns many more properties than Zillow Offers.

Opendoor has roughly doubled its number of team members to 1,300 over the last year, according to an Opendoor spokesperson. It’s expanded rapidly over the past couple years and currently buys homes in more than 20 markets.

However, several reviews left this month on the jobs site Glassdoor cast the shakeup in a negative light. Three recent reviewers said the company was undergoing “layoffs.”

“Currently in a cost cutting phase in an effort to achieve profitability faster,” reads one review, purportedly left by a former Opendoor pricing associate. It goes on to say that Opendoor is “in [the] midst of mass layoffs across the company” and is “relocating almost all operations to Phoenix.”

Echoing some other reviews, the post also reported that benefits and perks had been “sharply curtailed” in recent months. Several reviews specifically rued what they said was the elimination of free lunches.

Inman was not able to confirm the authenticity of the Glassdoor reviews.

Glassdoor requires users to certify their employee relationships and claims to subject every post to review, but the company admits that it cannot “fully confirm our users’ identities, the truthfulness of their contributions, or their employment status.” (Coincidentally, Glassdoor co-founder and former chairman Rich Barton recently replaced Spencer Rascoff as Zillow’s CEO to lead the company’s charge into iBuying, in a bold challenge to Opendoor.)

The Opendoor spokesperson did not respond directly when asked if the company had reduced benefits or perks for employees, including free lunch.

But the spokesperson did say that Opendoor provides benefits, including parental leave, medical coverage and a growth fund, that “exceed those found across the market and invest tremendously in all of our team members, including subsidized lunches in our offices of more than 100 people.”

Email Teke Wiggin

How do you stay ahead in a changing market? Inman Connect Las Vegas — featuring 250+ experts from across the industry sharing insight and tactics to navigate threat and seize opportunity in tomorrow’s real estate market. Join more than 4,000 top producers, brokers and industry leaders to network and discover what’s next, July 23-26 at the Aria Resort. Hurry! Tickets are going fast, register today!

Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.

SAVE MY SEAT

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×