Meta Shareholder Writes Critical Open Letter, Saying the Company Needs To Slash Headcount and Stop Spending So Much on 'Metaverse'

Altimeter Capital Chair and CEO Brad Gerstner said in an open letter to the company and CEO Mark Zuckerberg on Monday that Meta has too many employees and is moving too slowly to retain the confidence of investors. From a report: The Meta investor recommends a plan to get the company's "mojo back" including reducing headcount expenses by 20% and limiting the company's pricey investments in "metaverse" technology to no more than $5 billion per year. "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," Gerstner wrote in the letter. "In short, Meta needs to get fit and focused." The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. Meta stock is down over 61% in 2022 so far. At the end of the second quarter this year, Altimeter Capital held over 2 million shares of Meta. It's also a vote of less confidence about the company's ambitions in the world of virtual and augmented reality. Meta changed its company name from Facebook to better focus on its VR hardware and software, and is spending $10 billion per year on the technology. On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. However, there are few signs that VR or some of Meta's metaverse apps, like Horizon Worlds, are catching on with the public beyond early adopters. "In addition, people are confused by what the metaverse even means," Gerstner wrote. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards."

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