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.

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 news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Portal New Products
Property Portal New Product Roundup: Houza, Idealista and Housing.com

Three portal companies have launched new products or tools on their platforms this week. Here's all you need to know...

Read More
Aptuno Bogota
Latin American PropTech Aptuno Adds New Products

The Colombian headquartered end-to-end rentals specialist Aptuno has announced the launch of two new financing products designed to bring liquidity...

Read More
Yandex Bleak Houses
Yandex Reaches Settlement with Russian Classifieds Companies Over Competition Law Dispute

Russian search giant and online classifieds operator Yandex has reached a settlement with the country's Federal Antimonopoly Service (FAS) putting...

Read More
Otm British Street
OnTheMarket Performing 'Ahead of Expectations' as it Rapidly Approaches Breakeven

The majority agent-owned British portal OnTheMarket has released a trading update to the London Stock Exchange in which shareholders were...

Read More

Popular News