Y Combinator’s Garry Tan Goes to the MatRead more

Mark Zuckerberg. Photo by Bloomberg.

What Altimeter’s Meta Manifesto Says About Investor Attitudes to Big Tech

Photo: Mark Zuckerberg. Photo by Bloomberg.

It’s no fun being a Big Tech executive nowadays. Not only do they have antitrust regulators breathing down their necks, now investors are beginning to complain about their spending! Today, for instance, Altimeter Capital’s Brad Gerstner published an open letter to Meta Platforms CEO Mark Zuckerberg calling for him to reduce staffing by at least 20%, among other cost-cuts. Meta, he says, “has drifted into the land of excess…too many people, too many ideas, too little urgency.” Ouch.

Gerstner wasn’t only talking about Meta. He claimed that “it is a poorly kept secret in Silicon Valley” that other tech companies—he specifically mentions Google, Twitter and Uber—could generate as much revenue as they do now with far fewer people. That’s a critique we’ve become used to hearing about money-losing tech companies lately (and for that matter, about Uber and Twitter, which are both are either cutting back or soon will be). But it’s not something we’ve heard critics say quite so openly about cash-rich tech companies like Google and Meta. It’s a sign of just how much the economic downturn is fundamentally changing perceptions about tech.

Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Former Apple design chief Jony Ive and OpenAI CEO Sam Altman. Photos by Getty.
Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project
Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been discussing building a new AI hardware device, according to two people familiar with the conversations.
From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.
Exclusive Finance
Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams
The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that advised Silicon Valley Bank’s owner and Credit Suisse through recent turmoil, got two doses of bad news last week.
Art by Clark Miller
Exclusive startups entertainment
MasterClass Takes a Crash Course in Frugality
MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co. CEO Bob Iger.
OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella. Photos via Getty
Exclusive microsoft ai
How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar
Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI , the startup Microsoft funded in exchange for the right to use its cutting-edge technology.
From left: Paul Graham, Garry Tan and Michael Seibel. Photos by Getty. Art by Mike Sullivan.
Exclusive startups ai
Y Combinator’s Garry Tan Goes to the Mat
Garry Tan was in his happy place. Surrounded by food trucks and techies basking in San Francisco’s September sun, the CEO of Y Combinator snapped selfies with entrepreneurs as he meandered through a crowd of 2,700 attendees at the startup accelerator’s annual alumni event.
Dave Rogenmoser, cofounder of Jasper. Photo via Getty.
Exclusive startups ai
Jasper, an Early Generative AI Winner, Cuts Internal Valuation as Growth Slows
Jasper AI, an early darling of the generative artificial intelligence boom, has cut the internal value of its common shares 20%, according to former employees who were notified by the company.