{"id":1713015,"date":"2022-10-27T06:30:20","date_gmt":"2022-10-27T10:30:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1713015"},"modified":"2022-10-27T09:49:36","modified_gmt":"2022-10-27T13:49:36","slug":"major-facebook-investor-blasts-metaverse-calls-for-layoffs","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/major-facebook-investor-blasts-metaverse-calls-for-layoffs\/","title":{"rendered":"Major Facebook Investor Blasts Metaverse, Calls for Layoffs"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmajor-facebook-investor-blasts-metaverse-calls-for-layoffs%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1713015&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p class=\"subheading\">Brad Gerstner, the founder and CEO of Altimeter Capital, critiqued Facebook (now known as Meta) CEO Mark Zuckerberg\u2019s depth of focus on building its metaverse in an open letter <a href=\"https:\/\/medium.com\/@alt.cap\/time-to-get-fit-an-open-letter-from-altimeter-to-mark-zuckerberg-and-the-meta-board-of-392d94e80a18\">published<\/a>\u00a0this week.<\/p>\n<p class=\"a8d-pre\">Gerstner says Facebook has become inefficient and wasteful, particularly with the company\u2019s spending on its virtual reality technologies and metaverse, a <a href=\"https:\/\/www.breitbart.com\/tech\/2022\/10\/10\/make-mark-happy-facebook-employees-mock-zuckerbergs-metaverse-project\/\">personal obsession<\/a> of Zuckerberg.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<div id=\"attachment_21881076\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Zuckerberg-Meta-Selfie.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-21881076\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Zuckerberg-Meta-Selfie.jpg\" alt=\"Zuckerberg Meta Selfie\" width=\"640\" height=\"480\" \/><\/a><\/p>\n<p class=\"wp-caption-text\">Mark Zuckerberg Meta Selfie (Facebook)<\/p>\n<\/div>\n<p>He wrote, \u201cMeta has drifted into the land of excess \u2014 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.\u201d<\/p>\n<blockquote class=\"a8d-pre twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We just published an Open Letter to Mark Zuckerberg and the Meta Board urging them to tighten their belt and sharpen their investment focus. The plan would 2x annual FCF to $40B, double down on AI, and put a cap on metaverse related investments.  <a href=\"https:\/\/t.co\/jcvyRyWMjg\">https:\/\/t.co\/jcvyRyWMjg<\/a><\/p>\n<p>\u2014 Brad Gerstner (@altcap) <a href=\"https:\/\/twitter.com\/altcap\/status\/1584517207056187394?ref_src=twsrc%5Etfw\">October 24, 2022<\/a><\/p>\n<\/blockquote>\n<figure id=\"D-ROS-B2\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>\u201cMeta needs to get fit and focused,\u201d Gerstner wrote. \u201cMeta needs to get its mojo back,\u201d he added. He called on Zuckerberg to reduce personnel costs by 20 percent, to lower annual capital expenditures by $5 billion or more, and to limit annual spending on the metaverse \u2014 including Meta\u2019s Reality Labs subsidiary \u2014 to $5 billion or less:<\/p>\n<blockquote>\n<p class=\"pw-post-body-paragraph jo jp ig jq b jr js jt ju jv jw jx jy jz ka kb kc kd ke kf kg kh ki kj kk kl hz gh\">To accomplish this goal, we recommend a three step plan that will\u00a0<strong>double FCF to $40 B per year\u00a0<\/strong>and focus the company\u2019s teams and investments:<\/p>\n<\/blockquote>\n<ol class=\"\">\n<li id=\"2b4d\" class=\"km kn ig jq b jr js jv jw jz ko kd kp kh kq kl kr ks kt ku gh\">\n<blockquote>\n<p>Reduce headcount expense by\u00a0<strong>at least<\/strong>\u00a020%;<\/p>\n<\/blockquote>\n<\/li>\n<li id=\"d07d\" class=\"km kn ig jq b jr kv jv kw jz kx kd ky kh kz kl kr ks kt ku gh\">\n<blockquote>\n<p>Reduce annual capex by\u00a0<strong>at least<\/strong>\u00a0$5 B from $30B to $25B; and<\/p>\n<\/blockquote>\n<\/li>\n<li id=\"172e\" class=\"km kn ig jq b jr kv jv kw jz kx kd ky kh kz kl kr ks kt ku gh\">\n<blockquote>\n<p>Limit investment in metaverse \/ Reality Labs to no more than $5B per year.<\/p>\n<\/blockquote>\n<\/li>\n<\/ol>\n<p>In relation to what he described as wasteful personnel spending at Facebook, Gerstner recently replied to a viral video originally published on TikTok by a 23-year-old female product manager in which she described as a \u201cday in the life\u201d montage.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Hmmm \u2013 nothing to see here.  Looks like girding for battle to win the next big prize in tech.<\/p>\n<p>\u2014 Brad Gerstner (@altcap) <a href=\"https:\/\/twitter.com\/altcap\/status\/1584719019323465728?ref_src=twsrc%5Etfw\">October 25, 2022<\/a><\/p>\n<\/blockquote>\n<p class=\"a8d-pre\">Gerstner warned, \u201cIt is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to Twitter to Uber could achieve similar levels of revenue with far fewer people. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion.\u201d<\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p>Facebook\u00a0<a href=\"https:\/\/www.breitbart.com\/tech\/2022\/08\/07\/gaming-legend-john-carmack-zuckerbergs-metaverse-can-be-better-inside-the-headset-than-outside\/\">spent<\/a> about $10 billion on Reality Labs and metaverse development in its last fiscal year, with projections of increased annual spending towards these ends going forward. Gerstner warned that the company\u2019s projection of \u201can estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards.\u201d<\/p>\n<p>Altimeter Capital <a href=\"https:\/\/www.cnbc.com\/2022\/10\/24\/altimeter-capitals-brad-gerstner-calls-on-meta-to-slash-headcount.html\">owns<\/a> over two million Meta shares, according to a CNBC report. Facebook\u2019s total number of outstanding shares is <a href=\"https:\/\/finance.yahoo.com\/quote\/META\/key-statistics?p=META\">nearly<\/a> 2.3 billion.<\/p>\n<p><i>Follow Robert Kraychik on Twitter\u00a0<\/i><a class=\"x5l\" href=\"https:\/\/twitter.com\/rkraychik\" target=\"_blank\" rel=\"noopener external\"><i>@rkraychik<\/i><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brad Gerstner, the founder and CEO of Altimeter Capital, critiqued Facebook (now known as Meta) CEO Mark Zuckerberg\u2019s depth of focus on building its metaverse in an open letter published\u00a0this<\/p>\n","protected":false},"author":1,"featured_media":1713018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1713015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1713015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1713015"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1713015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1713018"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1713015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1713015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1713015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}