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by dana321 2336 days ago
They are spending $46 billion a year to keep all that running.

Over a million dollars spent per staff member.

Wow.

5 comments

Dollars spent per staff member is a metric that should necessarily increase over time as automation increases. Fewer and fewer staff is required for all of the costs.
> Over a million dollars spent per staff member.

Are you saying that's a lot, or not a lot?

At somewhere elite like Facebook many of those staff members are probably being paid about half of that in compensation. And then they have massive server farms to run.

Facebook has 30,000+ employees. There's no way even half of them are getting paid $500k.
No need to guess, median worker pay is public information. At Facebook it is $228,651.
44,942 employees, its in the document near the bottom of page 1 under headcount

https://s21.q4cdn.com/399680738/files/doc_financials/2019/q4...

There is non-cash perks including healthcare and other overhead.
I'm not equating that to how much each staff member costs, i'm saying thats what each staff member on average is roughly responsible for spending each year!
This is why I get confused when someone on HN says it would be easy and quick for a competitor to replace Facebook or Google. It's only easy if you can support such costs year over year over a decade or more.

The amount of software and hardware solutions that get developed over that time creates a great entry barrier. That's not to say that it's impossible for a competitor to appear with a great idea and execution and over time become the next big thing, but it's critical to emphasize that it's going to take a long time of large year over year investment to get there.

A quarter of that is CapEx alone though, so it's not about staff numbers despite the headcount growing relative to revenue.
Huge spike in general and administrative costs, is that hiring?
Most likely. They still seem to be hiring aggressively at least in Boston and NY