Dallas-Fort Worth was one of the first markets in the country where the company set up business.
Add Opendoor to the growing list of residential sales firms that are cutting staff.
The California-based property company is letting go of hundreds of workers because of slumping sales caused by the pandemic.
“COVID -19 has had an unforeseen impact on public health, the U.S. economy and housing,” Opendoor CEO Eric Wu said in a statement. “Given the shelter-in-place guidelines, we’ve seen declines in the number of people buying, selling and moving during this time of uncertainty.
“In response, we’ve announced to the company that we’ve made the difficult decision to reduce our team by 35%.”
Wu also said he is donating his salary to help support the employees who have been let go.
Started in 2014, Opendoor was one of the first so-called iBuyer real estate sales firms that offered to purchase sellers’ homes outright then resell them. Dallas-Fort Worth was one of the first markets in the country where the company set up business. The firm once bragged that it was the fastest-growing real estate sales firm in D-FW.
Opendoor had already curtailed its home-buying programs.
The company — which raised close to $1 billion dollars to fund its innovative operations — is one of several big residential sales firms to retrench in the face of the pandemic.
Last week, Redfin said it was furloughing four in 10 of its nationwide agents. Redfin CEO Glenn Kelman said most of the agents let go could make more money from federally enhanced unemployment benefits than their commissions.
In late March, Compass Real Estate said it was trimming more than 10% of its workforce after experiencing a 60% drop in home showings.
Real estate agents have understandably seen a plunge in homebuyer traffic and sales since shelter-in-place orders have been issued because of the coronavirus.