Meta shareholder calls on Facebook-parent to cut jobs, reduce spending

Facebook-parent Meta Platforms Inc needs to streamline by cutting jobs and capital expenditure, its shareholder Altimeter Capital Management said on Monday in an open letter to Chief Executive Mark Zuckerberg.

The company has lost investor confidence as it ramped up spending and pivoted to the metaverse, the technology-focused hedge fund with a 0.1 per cent stake said, and suggested a three-step plan.

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