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US-based digital real estate platform Opendoor has decided to shut its India operations and lay off all 250 employees in the country as part of a broader operational restructuring driven by artificial intelligence adoption. The move affects the company’s offices in Hyderabad and Bengaluru, which were established two years ago to support workflow management across multiple systems. According to the company, advancements in AI and the consolidation of internal platforms have reduced the need for large operational teams. The decision comes amid growing concerns over the impact of AI on back-office and entry-level roles globally, while businesses increasingly prioritise customer-facing operations closer to their primary markets.
US-based residential real estate technology company Opendoor will close its operations in India and lay off all 250 employees in the country, Chief Executive Officer Kaz Nejatian announced on June 11, citing the company’s increasing reliance on artificial intelligence and a shift towards locally based customer-facing teams in the United States.
The decision affects Opendoor’s offices in Hyderabad and Bengaluru, which were opened two years ago as part of the company’s international expansion strategy. The facilities were established to support a range of operational and workflow functions underpinning the company’s digital home-buying and home-selling platform.
Founded in 2014, Opendoor operates an online residential real estate marketplace that enables consumers to buy and sell homes digitally. Over the years, the company built a sizeable operational team in India to manage manual processes across multiple systems and workflows supporting its US business.
In a statement posted on social media platform X, Nejatian said the company had historically relied on a large India-based workforce to handle operational tasks spread across fragmented systems. He noted that recent efforts to unify those systems, combined with the deployment of smaller AI-enabled teams in the United States, had significantly altered the company’s operational requirements.
According to the chief executive, the company now believes much of its remaining operational work should be conducted in person and closer to customers. As a result, Opendoor has decided to discontinue its India operations entirely.
The announcement comes at a time when artificial intelligence is increasingly being integrated into business processes across industries. Technology-driven automation has raised concerns among policymakers, economists and labour market experts about the potential displacement of administrative, support and entry-level roles that have traditionally formed a significant portion of global outsourcing operations.
The restructuring also reflects a broader trend among some US companies that are reassessing workforce distribution and operational models. In recent years, policymakers in the United States have encouraged businesses to strengthen domestic employment and bring certain functions closer to home markets, particularly in sectors involving customer interaction and strategic operations.
For India’s technology and business process management ecosystem, the development highlights the changing nature of global outsourcing as companies increasingly deploy artificial intelligence to streamline workflows and reduce dependence on labour-intensive processes. While India remains a major hub for technology services and back-office operations, the growing adoption of AI is prompting organisations worldwide to rethink staffing structures and operational footprints.
Opendoor has not disclosed any further details regarding employee transition support or potential redeployment opportunities following the closure of its India operations.
Source - Reuters
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