Home NewsStock Market News Meta shareholders send letter to Zuckerberg looking for layoffs, spending cuts to streamline operations |

Meta shareholders send letter to Zuckerberg looking for layoffs, spending cuts to streamline operations |

by WOOWinvest
0 comment
Meta shareholders send letter to Zuckerberg looking for layoffs, spending cuts to streamline operations |


Altimeter capital Management, a shareholder of Facebook’s parent company Meta Platforms, said in an open letter to Meta Platforms CEO Mark Zuckerberg on Monday (24th) that the company needs to streamline its operations by laying off workers and limiting capital expenditures to get back its attractiveness to investors.

Altimeter Capital Management, a tech-focused hedge fund, owns about 2.5 million shares in Meta, or 0.11% of outstanding shares. The fund believes investors are losing faith in Meta as it ramps up spending and pivots to the Metaverse, and has made three proposals to boost the company’s net cash inflow.

Altimeter’s three recommendations are: cut headcount by 20%, cut capex by at least $5 billion to $25 billion per year, and limit Metaverse investment to $5 billion instead of the current $10 billion. The fund believes Meta could double its annual cash flow to $40 billion if it adopted the recommendations.

Meta has spent billions of dollars hiring thousands of people around the world to build the Metaverse, but Meta’s dreams have fallen through as Reality Labs, the metaverse division that researches augmented and virtual reality, continues to record staggering losses , the company lost $5.8 billion in the first half of this year.

Altimeter believes that investing in the metaverse is too large to meet Silicon Valley standards. In response, Meta declined to respond to a request for comment. The company will report third-quarter earnings after the market closes on Wednesday (26th).

However, Altimeter chairman Brad Gerstner, who has invested heavily in artificial intelligence, said his company would like to work with Meta, without giving any specifics.

Gerstner also noted that Meta has lost its focus, with the company’s stock underperforming its peers. He also believes that Meta has too many people, too many ideas, but too little sense of urgency, and that Meta needs to find its charm.

Before the deadline, Meta (META-US) shares rose 0.08% during the session, and the share price was tentatively reported at $130.08. Meta shares have fallen 63% so far this year, while the Nasdaq 100 is down about 30%.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy