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The American online real estate services company, Open Door Technologies, announced its intention to lay off about 550 employees, after the demand for real estate in the United States declined due to the high interest rates on real estate financing.
And the Bloomberg News Agency reported that the number of employees scheduled to be laid off represents about 18% of the total number of its employees. The decision to cut the number of jobs comes after the significant decline in real estate prices in the US market, forcing it to sell housing at prices lower than what it paid in it.
Bloomberg indicated that similar companies, including Zellow Group, Compass and Redfin Corp, have laid off a number of their employees in recent months.
“In fact, we are currently going through the most difficult conditions in the real estate market in 40 years, and we need to adjust our business model” to fit the new reality, said Eric Wu, CEO of the company.
“In order to move in a turbulent market, we had to work quickly over the past two quarters to reduce our operating expenses,” he added.
It is noteworthy that the Open Door company, headquartered in San Francisco, USA, buys and sells residential real estate, offers financing for home purchases through the Internet, and repairs and resells properties you buy.
