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> FB is making $30+bn a year profit, and is laying off people to reduce costs by $2b. They could continue to pay these people. The quarterly revenue was about
by rajman187 4y ago
> FB is making $30+bn a year profit, and is laying off people to reduce costs by $2b. They could continue to pay these people.
The quarterly revenue was about $27bn but net profit $4bn, so you're off by a factor of 7 or more on the estimate. R&D expenses alone are $9bn, and the largest operational expense is employee comp, by a LOT, distant second being data centers. For added measure, they also reduced real estate footprint along with the 11k employees.
The company has also essentially doubled in size every year since ~2013, and that was certainly encouraged by false positives in terms of future projections when the pandemic hit. So this is really not surprising, and a major cost-saving function for them.
- roflyear 4y agoMmm, I was looking at 2021 profit. Anyway, 16b a year is not a factor of 7 off from 30b.
- riku_iki 4y ago> R&D expenses alone are $9bn Are RSUs included into this number?
- _zoltan_ 4y agowhy would RSU (a comp element) be included in R&D spending?
- disgruntledphd2 4y agoBecause r&d spending at tech companies means engineers and product.