Opendoor shuts India operations, lays off 250 employees amid AI push
Opendoor, a US-based real estate firm, will shut its India operations and lay off 250 employees as it shifts to AI-driven processes, citing the need to bring operational work closer to US customers. The move follows a two-year expansion in India and reflects broader concerns about AI displacing entry-level jobs while US policymakers push for more onshore work.
Opendoor, a US-based digital residential real estate platform, announced it will close its India operations and lay off all 250 employees in the country. The decision comes as the company transitions to greater use of AI, according to CEO Kaz Nejatian, who shared the news on X on Thursday. The layoffs mark a shift away from outsourcing manual workflows handled by the India team, which was established to manage fragmented systems. Nejatian explained that as Opendoor unifies its systems and hires smaller AI-focused customer-facing teams in the US, operational work now needs to be conducted in person and closer to customers. Founded in 2014, Opendoor expanded its presence in India two years ago by opening offices in Hyderabad and Bengaluru. The company’s platform allows consumers to buy and sell homes online, but the shift toward AI has made its India operations redundant. The move aligns with broader industry trends, where AI advancements raise concerns about job displacement in entry-level and back-office roles. Additionally, US policymakers are increasingly pushing for more work to be done locally, further influencing Opendoor’s decision. The layoffs reflect a strategic realignment, with Nejatian emphasizing the need to streamline operations and prioritize AI-driven efficiency over outsourced labor. The company’s decision underscores the growing impact of AI on global business models, particularly in sectors reliant on digital transformation.
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