Cut jobs, shareholder tells Facebook parent Meta

Facebook-parent Meta Platforms Inc needs to cut jobs and capital expenditure, its shareholder Altimeter Capital Management said on Monday.

The suggestion was made by the technology-focused hedge fund an open letter to Chief Executive Mark Zuckerberg. Altimeter has a 0.1% stake in Meta, Reuters reported.

Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%. It also suggested trimming capital expenditure to $25 billion a year and capped annual investment in the metaverse to $5 billion instead of the current $10 billion.


Meta has spent billions and hired thousands of employees around the world to build the metaverse. The metaverse is Zuckerberg's dream of a shared digital environment that uses augmented or virtual reality technology to make it feel more realistic.

Reality Labs unit, which works on augmented reality, has repeatedly reported staggering losses.

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

FAQs

Who has suggested that Facebook cut jobs
Meta shareholder shareholder Altimeter Capital Management has written an open letter to Mark Zuckerberg to streamline the company.

What are Altimeter's suggestions
Cut headcount by at least 20%. Trim capital expenditure to $25 billion a year. Cap annual investment in the metaverse to $5 billion.