Suspending its iBuyer Scheme and Now This

April 15, 2020
Share this Post: 

As the days tick on, companies are ramping up measures taken to cut costs wherever possible. Unfortunately for some, that means massive layoffs and furloughs. 

Most recently, US iBuyer startup, Opendoor has laid off around 600 employees, equally about 35% of its workforce, to make ends meet. 

This news comes less than a month after the startup suspended its iBuying scheme of purchasing houses for resale, something that many iBuyers have been forced to do while the Coronavirus wreaks havoc around the world. 

The laid-off employees won’t be let go without any sort of compensation. Opendoor CEO Eric Wu announced that these employees will receive 8 weeks of pay and 16 weeks of health insurance coverage. Wu has also pledged to donate his salary for the year to an Employee Relief fund.

There’s a pattern with property companies looking to cut corners while revenue dwindles as consumers are forced to stay inside and suspend any property transactions they had originally planned.

When it comes to flexible workspaces, WeWork was forced to lay off employees to save money.  Earlier this month, Redfin announced that it would be laying off 7% of its staff and 41% of its agents

Opendoor is just one of many turning to layoffs during this time of crisis, and it certainly won’t be the last. And just when startups will be able to bounce back from this is still yet to be seen.

Read more

April 15, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Matterport Generic
Matterport 2024: Losses of $256 Million Despite 14% Revenue Increase

Matterport recorded net losses of $256.6 million in 2024 while total revenues rose 8% to $169.7 million, according to filings...

Read More
Untitled Design 1
Rightmove's Operating Profits Fell in 2024 Despite 7% Revenue Uptick

Rightmove, the UK's leading property portal, has released its trading update for the financial year 2024. The company saw resilient...

Read More
Housing Anywhere 2
HousingAnywhere CEO Djordy Seelmann Steps Down

The Netherlands-based rentals marketplace HousingAnywhere will announce a new CEO imminently after Djordy Seelmann stepped down after ten years at...

Read More
Scout24 German Houses Ii 3
Scout24 Saw Record Customer Numbers as It Increased Revenue 11% in 2024

The market-leading German real estate portal operator Scout24 has reported robust financial performance for the fourth quarter and full year...

Read More

Editor's Pick