New Delhi: US real estate technology company OpenDoor is winding down its India operations, affecting nearly 250 employees as the firm restructures around
artificial intelligence and smaller teams based in the United States. It’s part of a growing trend among technology firms as they seek to improve their efficiency and decrease the need for large offshore workforces, as AI becomes more prominent across many of these industries.
The move is part of the company’s continuing transformation under an initiative dubbed “OpenDoor 2.0”, which aims to streamline workflow, boost efficiency and move customer-facing operations closer to the company’s main market, the U.S. The layoffs have raised questions about the future of outsourcing, but OpenDoor claims that the move will be based on operational changes and not the performance of its India team.
OpenDoor confirms India exit
The company employed nearly 250 people in India when it launched OpenDoor 2.0 several months ago, OpenDoor executive Kaz Nejatian said in a note to employees.
Some of the jobs had been brought back to the United States in recent months, Nejatian said. The company is now making that shift and is in the works to close down its Indian operations.
He recognised the impact the decision has on employees impacted by the decision and emphasised that this should not be a reflection on their work.
“Our colleagues in India are great people, and we recommend them to anyone hiring,” Nejatian said in the employee communication.
AI-driven operations behind the shift
OpenDoor noted that its team in India was initially designed to support manual processes in a variety of systems. As time went on, these teams were used to handle various operational activities for various components of the business.
The company now claims to have streamlined those systems and added AI-driven processes that need fewer humans to run. OpenDoor has established smaller AI-native teams in the United States that are better able to deal with customer-facing tasks efficiently, Nejatian said.
Since most of the company’s customers reside in America, OpenDoor also thinks that operational work can be done more effectively near their customers.
OpenDoor 2.0 will require fewer staff members but boost efficiency with the help of AI tools and automation.
Building a simpler technology platform
As part of the restructure, OpenDoor will streamline their operation to remove unnecessary tools and manual processes.
The company is building what is effectively a single system that will enable staff to see the life of a property from purchase to renovation to resale. For OpenDoor, this will eliminate some workarounds that had to be used in order to integrate different software solutions.
The simplified platform will help staff members assume more responsibilities and overall increase the efficiency of the company.
Industry watches impact on outsourcing
This move has attracted attention from various technology and outsourcing firms, including those based in India, which has long been a major source of back-office services and technology in India.
By entering the market, OpenDoor’s shift underscores the growing influence of AI in reshaping traditional outsourcing paradigms, where extensive teams typically execute repetitive operational tasks.
Reacting to the development on social media platform X, technology commentator Keshav Lohia described the move as a potential turning point for AI-driven operations. He argued that advances in AI are reducing the cost advantages that historically made offshore teams attractive for global companies.
“As AI becomes more advanced, businesses can now replace large teams of operations with smaller teams of AI closer to the customer,” Lohia said.
Experts are not ready to make sweeping generalisations about the implications of the decision from one company, but the implications have sparked a renewed debate on the role AI may play in changing the nature of work around the world in the next few years.
Support measures for affected employees
Staff affected by the layoff will be given transition support, such as severance packages, career and outplacement services, OpenDoor said. A small team of staff will continue to work temporarily to ensure the successful closure of key workstreams during the deconstruction of India operations. Even though the company has restructured, management says its overall course is on track to continue the same way.
“Our priorities and direction have not changed, and OpenDoor is in a strong position and getting stronger,” Nejatian said.
Sign of what may come
OpenDoor’s move illustrates how AI is becoming a key factor in business HR planning. The answer lies in the synergy achieved by combining AI with human workers, as it continues to shape new opportunities and redefine workflows for businesses operating in a globalised world.
The move represents India’s first step to show how automation and AI-driven workflows can transform the economics of global business operations in the years to come.
