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Shareholder open letter asks Meta to fire employees and cut metaverse spending

— A Meta shareholder has told the company to layoff staff and cut spending.
— The shareholder says the company has too many employees and that its metaverse investment is ‘super-sized and terrifying’.

Altimeter Capital Management, one of Meta shareholders, has told the company to layoff some employees and cut spending as well.

In an open letter by the investment firm’s chair and CEO Brad Gerstner, the Facebook parent is not inspiring confidence of investors at this time. He claims that the company has too many employees on its payroll and is not moving fast enough.

“Meta needs to re-build confidence with investors, employees and the tech community in order to attract, inspire, and retain the best people in the world. In short, Meta needs to get fit and focused,” Gerstner wrote.

According to CNN Business, Meta Platform Inc. has seen its shares tumble by 60.17% in 2022, its highest drop in stock price since any of us can remember. So, it makes sense that shareholders are a little panicky.

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It does not help that the entirety of the company’s future seems to be going into the metaverse and all that it is bringing with it. Right now, Gerstner feels that the best way to move forward is to reduce metaverse investments to no more than $5 billion annually and cutting expenses by 20%.

CNBC says that Altimeter Capital Management owns a little over 2 million shares in Meta, which puts it out of the top decision makers. For context, The Vanguard Group Inc. owns 171 million+ shares of the company and there are several others who can really move the company before we will get to Altimeter.

Shareholder open letter asks Meta to fire employees and cut spending
Metaverse has cost about $100 billion, which investors find terrifying. Image Source: Forbes.

However, its lack of confidence may be more widespread. So, Meta employees at Instagram, Facebook, WhatsApp and its other subsidiaries should buckle up for rough tides ahead.

“We think the recommendations outlined above will lead to a leaner, more productive, and more focused company — a company that regains its confidence and momentum,” Gerstner added. He had also berated the alleged $100 billion bet in the metaverse as being too big, even by Silicon Valley standards.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.