Meta Platforms faced calls from a key shareholder to cut staff costs by 20 per cent and restrict outlay on metaverse development to no more than $5 billion per year to win back investor confidence.

Altimeter Capital chair and CEO Brad Gerstner urged Meta Platforms chief Mark Zuckerberg (pictured) to act to restore confidence among its backers, employees and the broader tech community.

The investor stated in a letter Meta Platforms had lost its mojo, with action needed to “attract, inspire, and retain the best people in the world”.

“In short, Meta needs to get fit and focused.”

Gerstner argued Meta Platforms needed to cut staff back to levels seen in mid-2021.

CNBC reported Altimeter Capital held more than 2 million Meta Platforms shares in Q2.

Gerstner also recommended the company slash annual spending from $30 billion to $25 billion, noting it could take up to ten years to generate a return on its investment in metaverse technologies and services including AR, VR, immersive 3D and its Horizon World app.

The investor expressed surprise at Meta Platforms’ change of name, noting confusion around what the metaverse is.

As the company upped its spending, it lost investors’ confidence, Gerstner stated.

Gerstner noted Altimeter Capital didn’t have any demands, instead seeking to engage with Meta Platform’s management to “continue sharing our thoughts as an interested shareholder”.