US-based real estate technology company OpenDoor has decided to shut its India operations, a move that will affect nearly 250 employees. The company said it is shifting towards smaller AI-driven teams in the United States.
In a message to employees, OpenDoor executive Kaz Nejatian said the company had around 250 workers in India when it launched OpenDoor 2.0 a few months ago. He added that some jobs had already been moved back to the US and the company has now started the process of winding down its India-based operations.
Nejatian clarified that the decision was not related to the performance of the Indian team.
“Our colleagues in India are great people, and we recommend them to anyone hiring,” he said.
Why is OpenDoor making this change?
According to the company, it had built a large team in India over the years to manage manual tasks across different systems. However, after upgrading its technology and bringing these systems together, OpenDoor has created smaller AI-native teams based in the US.
The company said having teams closer to customers in America would improve operations.
“Our customers are in America, and the work we do for them is best done close to them,” Nejatian said.
OpenDoor added that it plans to become a smaller company in terms of headcount but aims to increase its impact with the help of artificial intelligence and improved technology.
Debate over AI and outsourcing
The move has sparked discussions about how artificial intelligence could change the global outsourcing industry, which has made India a major hub for technology and back-office operations.
Some industry observers believe AI may reduce the need for large offshore teams and encourage companies to rely on smaller, AI-powered teams located closer to customers.
However, experts say one company’s decision does not necessarily signal a wider trend across the industry.
Support for affected employees
OpenDoor said employees impacted by the decision will receive severance benefits, transition support and outplacement services. A small number of employees will remain temporarily to help complete the transition process.
The company said its long-term strategy remains unchanged and that it continues to be in a strong position.
