Opendoor Shuts India Unit, Affecting Nearly 250 Jobs as AI Shift Tests Offshore Work
Updated
Updated · TechCrunch · Jun 11
Opendoor Shuts India Unit, Affecting Nearly 250 Jobs as AI Shift Tests Offshore Work
3 articles · Updated · TechCrunch · Jun 11
Summary
Nearly 250 India-based roles are being eliminated as Opendoor closes offices in Chennai and Bengaluru less than two years after opening them.
CEO Kaz Nejatian said the company is moving operational work closer to U.S. customers and reorganizing around smaller AI-native teams, while also cutting costs after a weak U.S. housing market hit the business.
That makes the closure a mixed signal: Opendoor's total workforce fell to 1,042 at the end of last year from 1,470, and its non-U.S. headcount dropped to 184 from 342.
The move still resonated across Silicon Valley because India hosts more than 2,100 global capability centers employing about 2.36 million people and generating nearly $100 billion a year.
Outsourcing analysts and investors said Opendoor may be an early example of AI reducing the labor needed for operational work, challenging the cost-arbitrage model behind offshore services.
Is Opendoor's AI pivot a true revolution or a convenient excuse for layoffs in a tough market?
As AI replaces offshore teams, are India's Global Capability Centers facing an inevitable collapse?
When AI automates work, what is the new defensible moat for any modern business?
Opendoor Exits India as AI Reshapes Global Workforce: Pursuing Profitability and U.S.-Centric Operations by 2027
Overview
Opendoor has decided to shut down its India operations as of June 11, 2026, laying off its local workforce. This move comes as the company’s main customers are in America, making it more efficient to handle operational work closer to them. Previously, Opendoor relied on a large team in India for manual workflows, but with major advances in technology and the integration of AI-enabled teams in the United States, the need for overseas manual work has decreased. Opendoor has promised comprehensive support for affected employees during this transition.