Facebook President was asked by Shareholders to cut jobs and spending in an open letter to CEO Mark Zuckerberg

Its shareholder Altimeter Capital Management said in an open letter to Facebook CEO Mark Zuckerberg that parents of the Meta platform need to streamline by cutting jobs and capital spending. .

The company lost investors’ confidence when it increased spending and pivoted to reverseTech-focused hedge fund with a 0.1% stake said, and proposed a three-step plan.

Altimeter says annual free cash flow could double to $40 billion (about Rs 3,30,700) if it cuts staff by at least 20% and cuts capital spending by at least $5 billion (about Rs 41,300). Rs) to $25 billion (approximately Rs 2,06,700.

Meta spent billions of dollars and hired thousands of employees around the world to build the metaverse, which refers to a shared digital environment that uses augmented or virtual reality technology to make it feel real. than.

But the company’s dream came to an end when the Reality Lab unit, which operates in virtual and augmented reality, kept reporting staggering losses. It lost $5.8 billion (about Rs 47,968) in the first six months of the year.

Altimeter said such massive investments “in an unspecified future are super-scale and intimidating, even by Silicon Valley standards”.

Meta Platforms, which is set to report third-quarter results on Wednesday after the market close, did not immediately respond to Reuters’ request for comment.

Brad Gerstner, president of Altimeter, which promotes strong investment in artificial intelligence, said the company wanted to work with Meta and didn’t have any requirements.

In June, the social media company cut its plans to hire engineers by at least 30%, with Zuckerberg warning employees to prepare for an economic downturn.

© Thomson Reuters 2022

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