Google’s parent company Alphabet is facing pressure from activist TCI Fund Management to take action to cut costs.

TCI, a shareholder since 2017 with shares outlined as valued at $6 billion, issued a November 15 letter to the board stating the cost base for Alphabet is “too high” and calling on management to take “aggressive action.”

“The company has too many employees and the cost per employee is too high. Management should publicly disclose an EBIT margin target, substantially reduce losses in Other Bets and increase share buybacks,” the statement argued.

The activist stated Google’s Search business has high operating leverage and is not labour intensive. It further highlighted that total expenses grew by 18% year-over-year in the third quarter, while revenue grew by “only” 6%.

TCI referenced recent moves by tech companies to cut costs, referencing Meta’s decision to reduce headcount by 13% and similar moves by Microsoft, Salesforce, Stripe, and Twitter.

Alphabet should follow Apple’s capital allocation strategy and become “cash neutral” over time through increased share repurchases, according to the dissident.

Alphabet share price was trading at $99.46 on Tuesday, up 3.5%. However, shares in Google’s parent company are down 33% in the last 12 months.