Nearly 50 employees were laid off from real estate startup Opendoor in June, Bloomberg reports. In addition to the layoffs, the company asked between 200 and 300 employees to relocate to one of its fastest-growing real estate markets in Phoenix, and trimmed its budget by cutting employees’ free lunch, according to the report.
The layoffs follow a recent shift in Opendoor’s leadership. Co-founder JD Ross, chief financial officer Jason Child, and VP of engineering Bali Raghavan have all reportedly left the company in recent months.
Despite the setbacks, Opendoor is still growing. The company, which buys homes and later resells them, said in March that it now handles close to 3,000 homes every month across 23 U.S. locations. Bloomberg quoted a company spokesperson saying the value of the homes sold is up more than 150% since last year. The 5-year-old company had around 1,300 people before the layoffs.
In March, Opendoor raised $300 million at a reported valuation of $3.8 billion from investors including General Atlantic, Softbank Vision Fund, and Khosla Ventures. The cash infusion came amid increased competition from companies like Openpad and Redfin, as well as real estate startup Zillow, which recently pivoted its business model to compete directly with Opendoor.