Here’s how much profit Facebook made per employee – and it is four times that of Google
The Four Horsemen of Tech. All have market capitalizations in the hundreds of billions. All dominate a giant category while having meaningful investments in emerging technology like AR/VR, autonomous vehicles, voices, AI, and so on.
Conventional wisdom has it that these four companies are unassailable in their core market, and that economic and policy forces are making them even more entrenched. Why would startups even try to take on the likes of Amazon, Apple, Google, or Facebook?
Facebook has leapfrogged Microsoft and Google’s parent company Alphabet in securing maximum profit per employee in the second quarter of 2017 while Twitter suffered a hefty loss, a media report said.
Facebook, which employed 20,658 persons in the past quarter – a 43 percent increase over the same period last year – made $188,498 (roughly Rs. 1.2 crores) per employee, according to a report in ReCode.
Microsoft made $52,400 (roughly Rs. 33 lakhs) and Alphabet $46,610 per employee – four times less profit per employee than social media giant…
What’s Facebook’s secret?
Much like many other technology companies, the software and applications developed at Facebook do not require humans for the production and distribution process, which makes it extremely cost-effective, thus ringing in the profits.
“Of course, even jobs formerly assigned to humans are coming under the purview of robots – so more industries could see consolidation of labour,” the report added.
The research that was restricted to select major companies who reported employee count in their latest quarterly earnings did not include Apple as they do not have a quarterly updated headcount.
Facebook’s high earnings comes in the backdrop of a debate raging in the United States about the actual contribution tech companies like Facebook are making to the economy. The contribution becomes difficult to calculate as the Internet services are largely free.