How Much Profit Are Tech Firms Making per Employee?

Employees keep some of the busiest and most successful corporations in the world afloat. Without employees, a company is merely just an idea that is unable to execute plans and generate sales.

Employees essentially keep the wheels of industry turning and they have the ability to send a very small SME to the top – look at Facebook, for example, once a two-man-band headed up by Mark Zuckerberg, now a multi billion company that has produced some of the best innovations in the world.

In 2017, Facebook was recorded to have 25,105 employees across the globe and that will only increase if their profits maintain their steady progression.

With that said, how much profit do the world’s most successful tech companies make per employee?

Research by PostBeyond shows how the tech companies listed in the Fortune 500 compare for profit made per employee.

Highest profit per employee:

  1. Facebook – $634,694
  2. Apple – $393,097
  3. Microsoft – $171,000
  4. Alphabet – $158,057
  5. Cisco – $131,81
  6. Netflix – $109,588
  7. Booking holdings – $102,218
  8. Adobe – $94,252
  9. Oracle – $67,645
  10. HP – $51,551

Despite Facebook’s big lawsuit this year in regard to user privacy, they still have a total profit margin of $15,934 million which is a 5.9% increase from the previous year. Although Apple having a total profit of $48,351 million in 2017, their profit per employee averages out at just $393,097 and is down -0.19% since last year.

Microsoft is one of the longest standing tech companies, founded in 1975 by Bill Gates and Paul Allen. However, longest standing doesn’t always mean biggest profit – Microsoft has a total profit of $21,204 million (less than half of Apple’s) and it’s profit per employee stands at $171,000. Despite ranking below Facebook and Apple, it’s percentage change from the previous year is 16.05%.

The companies who have had the biggest percentage growth change from their previous year are NetApp (170.81%), Netflix (125.99%) and Amphenol (109.88%) – all of which combined have a total profit per employee of $169,277 million, just under Microsoft’s profit per employee total.

In regard to the companies which have had a negative percentage change from their previous years, Xerox (-264.42%), eBay (-104.46%) and Motorola Solutions (-89.01%) have been hit the hardest. Data on PostBeyond’s interactive piece here also shows that Dell, eBay and Motorola Solutions are also within the bottom Fortune 500 companies by having the lowest profit: Dell losing $-3,728 million, eBay losing $1,016 million and Motorola Solutions losing $-155 million.

What is the worth of each employee in the industry you work in? Do you think your company is floating or falling?

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