Returning to the Opendoor Technologies Inc. OPEN board as chairman, Keith Rabois outlined a sweeping plan to slash the workforce and overhaul the company's culture.

Rabois, who was named Opendoor chairman on Thursday, told CNBC on Friday that the company has become "completely bloated." He said, "There are 1,400 employees at Opendoor. 

I don't know what most of them do. We don't need more than 200 of them." The co-founder indicated that drastic reductions are needed to align the company with operational goals.

The venture capitalist also criticized the company's workplace culture, particularly remote work and diversity, equity, and inclusion programs. 

"These people were working remotely. That doesn't work," he said. Rabois added that the company had gone down a "DEI path" that he plans to reverse, emphasizing a return to "merit and excellence."

Opendoor, which buys and sells homes, has recently gained attention as a meme stock popular with retail investors. Its stock surged this year, up 470% through Friday's close. 

The company also announced the return of Rabois and co-founder Eric Wu to its board, alongside the appointment of Kaz Nejatian, Shopify's COO, as CEO.

Nejatian announced on X Friday that he plans to begin working on-site at the start of next week.

See Also: Walmart, Microsoft, Disney Slash Jobs As Trump Tariffs, AI Push Corporate America Into Layoff Mode

In June, the tech sector experienced layoffs as companies adjusted to changing market demands and the growing influence of AI.

Rivian Automotive Inc. RIVN cut about 140 employees, roughly 1% of its workforce, mainly from its manufacturing team, ahead of the R2 SUV launch.

Bumble Inc. BMBL reduced around 240 jobs, or 30% of its staff, to boost operational efficiency and fund new product development.

Alphabet Inc. GOOG GOOGL, Google downsized its smart TV division by 25%, affecting up to 75 employees, while redirecting investments toward AI projects.

Intel Corp. INTC laid off 15%–20% of its Foundry division and began winding down its automotive business.

In July, Microsoft Corp. MSFT carried out a round of layoffs affecting fewer than 4% of its workforce, or approximately 9,000 employees. This was the company's second downsizing in 2025.

Price Action: Opendoor shares fell 13.78% on Friday but have surged 470.44% year-to-date, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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