Skyrocketing mortgage interest rates and inflation are largely to blame for the decreased demand that has led to slowdowns in business at such companies. For his part, Opendoor’s Wu said his company was navigating “one of the most challenging real estate markets in 40 years.”

In his blog post, the executive said that his company over the past two quarters had worked to reduce its operating expenses. He wrote: “Prior to today, we scaled back our capacity by over 830 positions — primarily by reducing third party resourcing — and we eliminated millions of fixed expenses. We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come.”

Impacted employees will receive 10 weeks of severance pay, with an additional two weeks of pay for every full year beyond two years of tenure. All current healthcare benefits will remain active for the rest of the month, then Opendoor will pay for three months of health insurance.

The company also plans to offer “job transition support” and launch an opt-in talent directory to help laid-off team members “connect with new opportunities.”

Founders include Eric Wu and Founders Fund general partner Keith Rabois.

Reporter’s note: The information around the company’s stock price on its first day of trading was amended post-publication to reflect its accurate opening and closing prices.

Opendoor lays off about 550 employees, or 18% of its workforce by Mary Ann Azevedo originally published on TechCrunch