Opendoor Cuts 250 India Jobs as AI Reshapes Outsourcing, June 12

Opendoor announced on June 10 that it is winding down its entire India operations and laying off all 250 employees based in Chennai and Bengaluru. CEO Kaz Nejatian said the company is moving operational work back to the United States and shifting to smaller AI-native teams. The move marks a major test case for how artificial intelligence is reshaping the offshore outsourcing model that has defined India’s role in global business for decades.

Why Opendoor Is Leaving India

Nejatian cited two main reasons for the closure. First, Opendoor’s customers are in the United States, so operational work belongs closer to them. Second, the company built a large India team to handle manual workflows across fragmented systems, but advances in AI and automation have reduced the need for that offshore workforce. Opendoor launched Opendoor 2.0 a few months ago, which unified systems and built small AI-native teams in the US. The company has already been moving some roles back to America over recent months.

The Broader Workforce Contraction

Opendoor’s India exit is part of a larger cost-cutting effort. The company employed 1,042 people globally at the end of 2025, down from 1,470 a year earlier. Its non-US workforce fell to 184 employees at the end of 2025 from 342 at the end of 2024. Opendoor had nearly 250 employees in India when it opened offices there in 2024. Nejatian emphasized the decision was not linked to the performance of the India team and praised them as excellent professionals.

What This Means for India’s Outsourcing Industry

India is the world’s largest Global Capability Center market, with more than 2,100 centers employing about 2.36 million people and generating nearly $100 billion in annual revenue. Opendoor’s exit has sparked debate in Silicon Valley about whether AI is reshaping the economics of offshore work. Experts see this as an early example of how automation could reduce demand for large-scale offshore operations. The move highlights a shift from simply moving jobs to another country to reorganizing entire business processes around AI and automation to operate with fewer people overall.

What It Means for OPEN Stock

OPEN stock fell 0.22% to $4.47 on June 12, near its 52-week low of $0.51. Meyka rates the stock C- with a strong sell recommendation based on weak profitability metrics. The company has a negative earnings yield and negative return on equity. Analyst consensus is hold with 2 buy ratings, 3 hold ratings, and 2 sell ratings. The restructuring aims to improve efficiency, but investors should note the company remains unprofitable with limited near-term catalysts for a turnaround.

Final Thoughts

Opendoor’s India exit signals AI’s growing role in reshaping global labor economics. With Meyka rating OPEN a C- and analyst consensus at hold, the stock faces headwinds from weak profitability and ongoing restructuring challenges.

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