Meta to lay off thousands of its Employees

Meta, the parent company of Facebook, must overhaul its operations by cutting the company’s own jobs and expenses, says Altimeter Capital Management in an open letter addressed to the group’s chief executive, Mark Zuckerberg.

For those who don’t know, Altimeter Capital Management is one of Meta’s biggest shareholders, with a very active voice within the company. In addition, Meta appears to have lost investor confidence due to increased spending and a metaverse orientation, said hedge fund Altimeter, which holds a 0.1% stake in Meta.

According to Altimeter, Meta’s annual free cash flow could double to US$40 billion if the company reduces its workforce by at least 20%, cuts capital expenditures by at least US$5 billion to reach US$ 25 billion a year and limit its annual investments in the metaverse to 5 billion dollars instead of the current 10 billion.

Meta invested a lot and hired thousands of employees around the world to build the metaverse, a digital environment that uses augmented or virtual reality. The project, however, is struggling in the Meta’s Reality Labs division, dedicated to augmented and virtual reality, which lost 5.8 billion dollars in the first six months of the year. According to Altimeter, these huge investments “in an unknown future are huge and terrifying, even by Silicon Valley standards.”

The Target in June lowered its engineering recruitment target for this year by at least 30% as Mark Zuckerberg warned employees to brace for an economic downturn.

Meta to lay off thousands of its Employees

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