Shareholders Want Meta To Get Its Act Together And That Includes Cutting Down On Jobs

One of Meta’s top shareholders wants the company to get its act together after seeing poor performance reports take center stage.

Brad Gerstner who has been a loyal and long-term investor has proposed his thoughts on the matter and that includes calling upon the firm via a three-step ‘comeback’ initiative. And while the sounds of it may be fantastic, it includes chopping down on the enterprise’s workforce figures.

Gerstner mentioned how this could be the ideal strategy to assist in doubling cash flow to a staggering $40 billion annually. But of course, this is at the expense of other employees that happen to be working over there.

This outline has a massive 20% cut in the workforce being mentioned of various staff members and that’s a massive 16,000 jobs getting cut, thanks to data made public by the Companies Market Cap recently.

In testing and troubled times like today, it’s not the best feeling in the world for those who are working hard and relentlessly at their jobs to make a living. So what exactly are the steps of the plan. Below, we’ve highlighted them for you.

For starters, there are calls for a reduction in headcounts at the expense of around 20%. Next up, they need to cut down on the annual capex by a staggering $5 billion. This means going down from figures of $30 billion to $25 billion. Lastly, it also spoke about limiting investments taking place in the metaverse to nothing more than $5 billion each year.

If you ask us, well, if this plan is really to be followed closely, it could really prove to be wonderful as estimated by Gerstner. He says that the FCF can increase by around $20 billion in the following year. This would help put the FCF as a mega percentage of revenue that’s in line with the competitors out there like Google, Apple, and even Microsoft.

With such changes being implemented, we don’t see how it can’t bring back the confidence of Meta’s investors that they’ve had in the company since day one. Remember, stocks have fallen by a mega 55% in the past 18 or so months. We agree that the economic downturn is a lot right now but other leading tech giants saw shares drop by only 19%.

By the letter’s end, Gerstner mentioned that he was only making some suggestions that he felt the firm could benefit from. Whether or not anyone chooses to take on the advice is totally up to them. Moreover, the letter concluded with him speaking about how he’d be more than happy to discuss the plan with the company further if they want.

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