Opendoor Technologies Inc shares slid 5% to $1.66 on Tuesday after the online real estate company announced it is eliminating about 560 jobs, or 22% of its workforce, mostly from its operations unit, citing a weaker housing market.
Today's job cuts are in addition to the 550 positions the San Francisco-based firm said it would eliminate in November.
“We're taking these actions now to better align our operational costs with the anticipated near-term market opportunity,” the company said in an email, as reported by Reuters.
Opendoor saw its loss more than double in 2022 to $1.4 billion, even as its sales of $15.6 billion were nearly twice as much as last year, as the company said new listings have fallen by about 30% from its peak in 2022 due in part to higher mortgage interest rates.
Opendoor employs artificial intelligence systems and other technologies to help it purchase and price thousands of homes, with the aim of reselling the living spaces within a few months for a profit.
The company said the market slowdown has forced it to cut prices on some of its homes and reduce its marketing spending.
Opendoor bought about 35,000 homes in 2022, nearly 13,000 of which remained unsold at year's end.
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