"Meta has veered into excess — too many people, too many ideas, too little urgency. This lack of focus and fitness is obscured when growth is easy, but deadly when growth slows and technology changes," Gerstner wrote in his letter. 

In his letter, the Altimeter chair recommended that the platform cut headcount expenses by 20% and limit its metaverse and virtual reality (VR) investments to no more than $5 billion per year.

Gerstner also advised cutting its annual capital expenditures, which are long-term investments made by a company to improve fixed or non-consumable assets, by at least $5 billion.

Altimeter Capital possessed over 2.4 million Meta shares at the end of Q2 2022, despite the fact that the stock had dropped by around 60% in the previous year.

According to recent Meta internal documents, its flagship metaverse platform, Horizon Worlds, is undervalued in terms of user attraction compared to an original goal of assembling 500,000 active users per month (MAU). Its existing MAU remains below 200,000, according to the Wall Street Journal.

Last year, Meta, previously known as Facebook, rebranded to focus on metaverse advancement.

Oct 25, 2022
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