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Tuesday, 19 May 2009

Who’s making maximum profit per head count?

Have you ever imagined how much money companies use to make per head count. Let’s analyze what kind of money the well known global tech companies are making such as Apple, HP, IBM, eBay, Dell, Google, Yahoo, Microsoft etc., in total we will analyze 15 companies. These companies have sheer size of workforces.


Some interesting facts about the employee size:



  • IBM head count is around 400k. Its employee strength is more than total workforce of Microsoft, Intel, Dell, Cisco, pple, Amazon and Google.

  • HP employees are more than four times the employees of Dell.

  • Amazon stands almost parallel to Google in terms of workforce count.
  • Microsoft employee size is three times the strength of Apple.

Analyze profit and revenue per employee


General perception is that larger the company, larger the overhead and costs. But tech companies are breaking this perception by earning more and more profit per employee.


Refer the table below for deep understanding:


Revenue and profit per employee in 2008 (in USD)

Company

Employees

Revenue per employee

Profit per employee

Google

20,164

1,080,914

209,624

Microsoft

91,000

663,956

194,297

Baidu

6,397

499,961

163,844

Apple

32,000

1,014,969

151,063

Cisco

66,129

597,922

121,762

Adobe

7,335

488,056

118,856

eBay

16,200

527,238

109,844

Intel

82,500

455,588

64,145

Oracle

86,657

258,837

63,711

Dell

76,500

798,706

32,392

Amazon

20,600

930,388

31,311

Yahoo

13,600

530,037

31,199

IBM

398,455

260,080

30,957

HP

321,000


368,735

25,947

Sun


33,556

413,637

12,010


Some more interesting facts

Google is clear winner by making maximum profit per employee than the other tech companies like Microsoft, Yahoo, Apple and Intel. HP and IBM in spite of sheer employee size making relatively low profit per employee. Microsoft is doing great job and very closes to Google irrespective of having 4.5 times as many employees.

Let’s simplify the above table


  • IBM, Yahoo, Amazon and Dell have over $30k profit per employee
  • Oracle and Intel’s profit margin is more than $64k
  • Adobe and Cisco have around $120k



I’m not a financial analyst or HR research person but this makes me feel that Google is working very strategically by making good balance between profit and employee. Above figures may change soon as most of the companies are saying TATA – BYE BYE to their employees by giving pink slips.


Companies included in the survey are publicly traded on NYSE/NASDAQ. Although Sun was recently bought by Oracle.

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