In Meta’s latest financial release, Mark Zuckerberg called 2023 as the “year of efficiency.”
That is a great title to explain what’s going on, right now, in big tech.
So I went on, and dived into Big Tech financials, to figure who’s “the most efficient big tech player.”
For the sake of it, I’m looking at how much revenue per employee each tech giant made in 2022.
Of course, I want to clarify that this is in no way a comprehensive metric, which explains the whole business, neither it wants to mean anything, rather than guessing which company is able to generate more revenue out of each employee.
And, also how, often, companies, to keep their business model efficient make broad cuts. Thus, by monitoring this metric, you can understand when big tech players might be considering layoffs, as a way to get back their business model efficiency.
Can you guess who wins here?
Apple is the clear winner when it comes to revenue per employee, as the company generated over $2.4 million per employee, in 2022.
With the iPhone still representing a good chunk of the company’s revenue, and with its wide margins, Apple is one of the most effective companies in the world.
Indeed, Meta generated over $1.5 million per employee in 2022.
I was surprised to see how Microsoft compared to the other big tech players.
No wonder then, that Microsoft is trying to steal Google’s advertising machine.
Tesla is a quite interesting case.
And yet, it’s worth to remind that, while Amazon started as an e-commerce website, in reality, most of its moat is into distribution, in the form of inventory management and fulfilment/last-mile delivery.
Thus, Amazon, to work at its scale, requires massive operations, that are very expensive to run.
Another factor is Amazon employees a massive amount of part-time workers, which lowers up its total revenue per employee. Indeed, we can easily speculate that a segment like Amazon AWS’s revenue per employee might be comparable to that of Apple or Google!
Below is a recap!
Big Tech Efficiency
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