Congratulations, Google staff: $210k in profit per head in 2008

Google had $209,624 in profit per employee in 2008, which beats all the other large tech companies we looked at, including big hitters like Microsoft, Apple, Intel and IBM.
(As you may know, we have been taking a closer look at what kind of money some of the most well-known tech companies are making. The ones we have been looking at are Adobe, Amazon, Apple, Baidu, Cisco, Dell, eBay, Google, HP, IBM, Intel, Microsoft, Oracle, Sun and Yahoo.)

Correction to the numbers above: Baidu’s numbers are in Chinese RMB, not USD.
Some companies who have almost the same profit per employee:
- Just over $30k: IBM, Yahoo, Amazon and Dell.
- Around $64k: Oracle and Intel.
- Around $120k: Adobe and Cisco.
A battle against overhead due to size?
One would imagine that the larger a company gets, the more difficult it becomes to minimize overhead and costs. For example, HP and IBM, by far the largest companies listed here in terms of sheer size, have a relatively low profit margin per employee.
In that sense Microsoft is doing a very good job considering that they are close to matching Google in spite of having 4.5 times as many employees. And of course, looking at overall profit for the company, Microsoft is way ahead of every other company on this list.
We’re definitely not financial analysts, but it seems to us that Google is doing a really good job keeping their company profitable even though they have grown so rapidly (Google just turned 10 last year).
Summary table for 2008
For those interested, here is a table with some more data, including the actual number of employees and the revenue per employee. The list is sorted by profit per employee:
| Company | Employees | Revenue per employee | Profit per employee |
|---|---|---|---|
| 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 |
Correction to the numbers above: Baidu’s numbers are in Chinese RMB, not USD.
Further reading: You might want to check out our two previous posts in this little series, the first being about how much money these companies are making, and the second one being about how big they are.
Hat tip to Daniel Howard who asked us for the profit per employee numbers in the first place.
Data source: Google Finance
All the companies we included in this survey are publicly traded on NYSE/NASDAQ. Although Sun was recently bought by Oracle, we included it anyway.
Image credit: Tracy O.


Do you live in a country that loves Apple’s iPad? Most of us probably think we do, but we wanted to be able to tell you for sure. So even though we have written about the iPad 
The juggernaut that is Facebook is quickly approaching 1 billion users, so the social network is
Developers who want a portable computer to code on, which is thin, light, sleek and yet powerful, may now be getting another option in an ultrabook from Dell. What makes the “Sputnik” ultrabook different is that it runs Ubuntu 12.04 Linux and it’s tailor-made for developers.



[...] Secondo quanto riporta Royal Pingdom, nel 2008 Google ha realizzato un profitto per impiegato pari a 210.000 dollari, superando in questo qualsiasi altra azienda tecnologica di grandi dimensioni, come Microsoft, Apple, Intel ed IBM. Nella sua analisi Royal Pingdom ha poi preso in esame anche Baidu, Cisco, Adobe, eBay, Oracle, Dell, Amazon, Yahoo!, HP e Sun, ed ha creato il grafico sottostante nonché una tabella riassuntiva dei profitti per impiegato di tutte queste aziende nello scorso anno. Si potrebbe immaginare che più un’azienda cresce in dimensione, più diventa difficile ridurre i costi di gestione, dice il Royal Pingdom blog, ma ad esempio Microsoft riesce molto bene in questa impresa considerando che ha circa il quintuplo dei dipendenti che ha Google, mentre quest’ultima addirittura eccelle se si pensa altresì al suo velocissimo ritmo di crescita. [...]
[...] revenue per employee falls somewhere between Adobe and eBay based on revenue estimates provided by Royal Pingdom. For a company which has yet to find a “breakthrough” revenue model, it’s most [...]
[...] Pingdom reports that Google made a stunning $209,624 profit per employee in 2008. [...]
[...] embargo, debe tratarse de un equipo de gente bastante creativos, a los que han permitido lanzar un interesantísimo blog en el que hablan de temas un tanto ajenas a su negocio, como son los resultados económicos de las [...]
[...] You read more here. [...]
[...] Pingdom Reporta que Google tuvo una impresionante utilidad por empleado de 209.624 dólares por empleado durante el año 2008. [...]
[...] particular media attention was placed on Google’s rate of hiring. Well, according to recent analysis done by Pingdom, maybe the headcount worries were a little premature. In fact, while overhead costs may be [...]
[...] Ed ecco per gli amanti dei numeri, alcuni grafici tratti da qui [...]
[...] One of the recent reports by Pingdom states that Google made an astonishing profit of $209,624 per employee in 2008. The report also indicated [...]
[...] Sell your knowledge not your time. Quit your job! [...]
[...] Congratulations, Google staff: $210k in profit per head in 2008 (Pingdom vía FayerWayer [...]
[...] 11:55 am on May 19, 2009 Permalink | Reply Tags: business (83) Interesting profit per head table where Google comes out top at $209,624. Microsoft is impressive though as it has 4.5 times [...]
[...] 1.6 Mio Profit pro Nintendo Mitarbeiter und Jahr, dieses Jahr – im vergleich bei Google 194k Vergleichschart [...]
[...] A couple of blog posts have gone around citing profit per employee figures from 2008. This one and this one. [...]
[...] 2008 o lucro médio gerado por cada funcionário do Google foi de 210 mil dólares, segundo o Pingdom. Clique para conferir a história completa (em inglês), ou confira na tabela abaixo como outras [...]