Opendoor axes 250 jobs in India in favor of small, ‘AI-native’ U.S. teams. Why outsourcing may be on the way out

Opendoor [NASDAQ:OPEN], the San Francisco-founded institution that allows radical to bargain and merchantability homes for currency done its platform, is the latest tech corp to denote important layoffs — but, dissimilar others, the cuts volition not impact immoderate of its U.S. workers.

CEO Kaz Nejatian announced connected Wednesday (1) that enactment has decided to shutter the firm’s offices successful India, where, until recently, astir 250 workers had been based.

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“Our customers are successful America, and the operational enactment we bash for them is champion done adjacent to them,” Nejatian wrote successful a connection to staff, which helium shared connected X. He added that down the scenes, immoderate jobs antecedently held by squad members successful India — which were located crossed the cities of Chennai, Hyderabad and Bengaluru nether the enactment of Indian operations caput Venkata Machavarapu (2) — person already been brought backmost to U.S. ungraded implicit caller months.

This latest measurement is being billed arsenic the finalization of that process, prompted by the instauration of a caller strategy.

“For years, Opendoor built a ample squad successful India to grip manual workflows crossed fragmented systems,” the memo further explained. “As we’ve unified these systems and person hired tiny AI-native customer-facing teams passim the U.S., we request each this operational enactment to beryllium done in-person and adjacent to our customers.”

The institution had opened caller sites successful India, including a “cutting-edge improvement center,” arsenic precocious arsenic June 2024 (3).

New mandate puts AI archetypal

The determination is successful enactment with the company’s caller vision, titled Opendoor 2.0, which Nejatian, a erstwhile Shopify executive, introduced soon aft helium took the reins successful September 2025 (4).

The superior purpose of the broad revamp is to instrumentality the marque to profitability done “transacting with much sellers, strengthening our portion economics done amended pricing and resale speed, and driving operational ratio by being ruthless connected expenses,” arsenic the newly-appointed CEO wrote past autumn (5).

Opendoor’s large pivot has included refocusing connected tech — “We are refounding Opendoor arsenic a bundle and AI company,” reads a merchandise (5) connected the taxable from November — including done automating immoderate backend executions and customer-facing features with the usage of AI.