American company closed business from India, 250 people lost their jobs, CEO told the reason

America’s leading real estate technology company ‘Opendoor’ has announced to close its entire operations in India. Due to this decision, about 250 employees working in the company’s Indian offices have lost their jobs in one fell swoop. Explaining the reason behind this layoff, the company’s CEO Kaz Nejatian has said that their customers are in America, hence the operational work of the company should also be close to the customers. Apart from this, the increasing use of technology and Artificial Intelligence (AI) has also significantly reduced the need to outsource work abroad.

Why was such a big decision taken?

CEO Kaz Nejatian shared a note sent to employees on social media platform ‘X’. In this note he has clearly written that the main market of the company is America. In such a situation, it makes more sense for the business to have the team that is providing them services in America. For the last few months, the company was gradually shifting many of its roles back to America. Now this change has been finalized by completing the work in India.

AI technology took away human employment

The direct impact of this news of job losses is not limited to just these 250 people, but it is also a strong signal for the employment market going forward. The company had created a large team in India so that the manual work done between different systems could be handled from India. But now due to major improvements in technology, many processes have become automated. In America itself, small teams equipped with AI have started doing the work which earlier required a large number of people in foreign countries.

Questions were not raised on the performance of employees

This layoff is in no way a result of the poor work of the Indian team. The CEO himself has emphasized that India’s employees are extremely talented. He praised the contribution of the Indian team and expressed confidence that these professionals will prove valuable to any other organization. At present, all possible help is being provided by the company to all the employees who have lost their jobs. They will get severance package (compensation) as well as facilities like outplacement service in finding a new job. To smoothly complete this process of shifting the work to America, some employees will continue to work temporarily.

Vibhav Shukla

Vibhav Shukla is currently working at TV9 Hindi as Senior Sub-Editor on Business Desk. He has six years of experience in journalism. Vibhav is originally from Mau district of Uttar Pradesh. He started his career with Rajasthan Patrika. After this he has been associated with prestigious institutions like Inshorts and Gujarat First.

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