Microsoft more productive than Facebook?
MSFT total # of employees: 140,000 FB total # of employees: 45,000 Microsoft major products: Office/Office Web Apps, Windows, Azure, Bing, Xbox, Hololens, Visual Studio, and a bunch of enterprise stuff like Dynamics, Teams, SharePoints, etc Facebook major products: FB app, Messenger, Instagram, WhatsApp, Workplace, Oculus, etc Looks like Microsoft has 2x more employees than FB, but delivering a much vaster line of products, and paying a lower salary to its employees than FB. Does it mean Microsoft as a company is more productive/efficient than FB? Thoughts? TC 170k
45k * 2 != 140k. It’s over 3x more employees. Math is hard?
Are numbers of engineers? I heard FB has an army of content verifiers
Just an overall idea as a company. I think MS also has a lot of people on sales or BD team
Microsoft revenue = $126B ($900K/employee) Facebook revenue = $70.7B ($1.55M/employee) That should also explain to you why Microsoft pays much less than FB.
Looking at it from another perspective: - MSFT had Q4 total revenue of $33.7B with 140k employees - FB had Q4 total revenue of $21.08B with 45k employees. MSFT generated $240.7k per employee. FB generated $468.4k per employee. In Q4 2019, MSFT -net- revenue was $13.2B. FB net revenue was $7.35B. MSFT net per employee: $94.3k FB net per employee: $163.3k From an efficiency standpoint, my vote goes to FB. Edit: (I was typing this when above post was made.)
Makes sense why FB can pay close to double what Microsoft does for a comparable role. They make almost double the money per employee.
Exactly. See net profits per employee and operating margin to measure "efficiency"
Hmm.. Never thought of it from that angle.
That’s the only angle that matters when it comes to employee pay
Web companies are business driven. They come out ideas and hire the best people to implement the idea. That’s why they have to pay very well for something pretty simple to do because they don’t grow their own people. They end up hiring redundant people because lots of these ideas would fail, but as long as stock is good, most of these people are welcome to stay to work on the next idea.
Lol. Measure by net profits. Omg. By your standard Albertson is the most productive company. Let me find you. Both are 2019 Q4. Revenue/Net Income FB: $21B/$7.4B MSFT: $37B/$11.6B MSFT are 1.8x and 1.6x while total employee is 3.1x So which company is more productive?
This is great point. Typical measure should be revenue and profit per employee. Fb >>>> msft in that perspective. Thats also why fb’ers get high comp.
Buddy 140000 / 45000 is more than 3
Scale , how many ppl on earth have access to MS products vs FB ?
FB has a way bigger reach but each MS customer is worth far more
Not to be a jerk, but Windows team has an outreach of at least 4.5 billion people. That's more half the world's population