To make his plan clear, Gerstner said that his cunning plan would help the company double its free cash flow (FCF) to $40 billion per year. With numbers like that, who cares that it involves axing at least 20 per cent of staff, which works out to more than 16,000 jobs being cut, they are only humans after all.
Gerstner did not believe that the Metaverse plan was worth all the cash that Meta was pouring into it. He thinks that spending on this should be limited to $5 Billion.
Such a change in Meta’s finances could help restore investor confidence in Meta, which has seen its stock price fall 55% in the last 18 months, whereas other big tech firms have seen their stock fall by an average of just 19 per cent.
At the end of the letter, Gerstner said that he wasn’t demanding the company follow through with his advice. He said his company was just offering advice to Meta as an interested shareholder. He ended the letter by saying he’s happy to meet with Meta to discuss the plans further.