San Francisco, California – Keith Rabois, the newly appointed chairman of Opendoor Technologies, is advocating for substantial workforce reductions at the company, which is currently home to approximately 1,400 employees. Rabois described Opendoor as “bloated,” suggesting that the company could operate effectively with a staff of around 200.

Rabois’s return to the board was announced this week alongside significant leadership changes, including the appointment of Kaz Nejatian, formerly of Shopify, as the new CEO. Rabois articulated his plans to revamp the company’s culture, which he described as “broken” in a recent interview. He pointed to issues stemming from remote work arrangements and overly ambitious diversity and inclusion initiatives.

“Many employees are working in roles that may not be essential to our goals,” Rabois remarked, emphasizing the need for a streamlined approach to ensure productivity and efficiency at Opendoor. He framed the current workforce structure as overly complicated and suggested immediate changes were necessary to redirect the company’s trajectory.

Opendoor, which specializes in the buying and selling of homes, has recently garnered attention as a favored stock among retail investors, referred to as the latest “meme stock.” Following the announcement of leadership shifts, the company’s stock surged, marking a 470% increase year-to-date by Friday’s market close.

Rabois, who also holds a position at Khosla Ventures, criticized the work-from-home model and suggested that it has hindered Opendoor’s performance. “Working remotely is not effective for us,” he said, asserting that a return to a more traditional workplace will be prioritized moving forward. He also expressed intentions to pivot away from current diversity and inclusion strategies, advocating for a renewed focus on merit-based performance and excellence.

The ongoing discourse around remote work has sparked broader discussions within the tech industry, with several other companies reevaluating their workplace policies. Notable firms like Amazon, Google, and Meta have begun revising their diversity programs in response to similar pressures.

As Rabois steps into his role, it remains to be seen how these proposed changes will affect Opendoor’s operational structure and its employees. The company’s response to these shifts, and its overall strategy in the competitive real estate market, will be closely watched by industry observers and investors alike.