Shulou(Shulou.com)11/24 Report--

According to news on the evening of October 24, Beijing time, Brad Gerstner (Brad Gerstner), chairman and CEO of venture capital firm Altimeter Capital, today wrote to Meta and CEO Mark Zuckerberg, parent companies of Facebook, saying that Meta has too many employees and is too slow to maintain investor confidence.

To this end, Gerstner suggested that Meta be restructured, including a 20% cut in staff costs and a limit on meta-cosmic investment, including VR software and hardware, of no more than $5 billion a year. It is reported that since the beginning of 2021, Meta has spent more than $15 billion on the meta-universe project. In the next few years, Meta plans to invest tens of billions of dollars to build a "meta-universe".

"Meta needs to rebuild confidence with investors, employees and the technology community to attract, motivate and retain the world's best talent," Gerstner said in an open letter. "in short, Meta needs to be healthy (of the right size) and focused."

At the end of the second quarter of this year, Altimeter Capital held more than 2 million Meta shares. Clearly, the letter is the latest sign that investors have reservations about Meta's recent performance. Meta shares have fallen more than 61 per cent so far this year.

At the same time, it is also a vote of no confidence in Meta's ambitions in virtual and augmented reality (VR / AR). To better focus on VR hardware and software, Meta plans to spend about $10 billion a year on the technology.

On October 11, Meta released a new high-end VR headset Quest Pro. However, there is little sign that some "meta-cosmic" applications of VR or Meta, such as Horizon Worlds, are becoming popular among the public other than early users.

"people are confused about the concept of meta-universe," Gerstner said. "if Meta invests $1 billion to $2 billion a year on this project, that confusion may not be a problem." The fact is that Meta's investment is much larger than this.

Gerstner also predicts that Meta's investment in meta-universe could take a decade to bear fruit. "even by Silicon Valley standards, investing more than $100 billion is huge and frightening when the future is uncertain," he said. "

In the final analysis, Gerstner argues that Meta has too many people and spends too much on capital expenditure. If Meta can control these costs, its free cash flow can double and its share price will rise.

Gerstner concluded by saying he didn't have any extra requirements and just wanted to interact with Meta management. These suggestions will make Meta more streamlined, more efficient, more focused, and regain investor confidence and momentum.

Meta has not commented on this.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.