By Sam Boughedda
The London-based activist hedge fund TCI Fund Management has urged Alphabet (NASDAQ:GOOGL), the parent company of Google, to aggressively cut expenses and reduce losses in long-term projects like the self-driving car unit Waymo, according to reports on Tuesday.
In a letter to CEO Sundar Pichai, the fund claimed that Alphabet would be more effective with a reduced workforce.
TCI said it owns shares worth over $6 billion in Alphabet and has been a significant shareholder since 2017.
"We are writing to express our view that the cost base of Alphabet is too high and management needs to take aggressive action," TCI reportedly stated in its letter, signed by Christopher Hohn, the firm's managing director.
They added that "the company has too many employees and the cost per employee is too high."
Alphabet shares have risen over 3% so far during Tuesday's session, although the stock is down over 31% in 2022.