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500 employees * lets say $150,000 per employee * 6 years is only $450,000,000. That leaves ~$150m from previous rounds to spend on infrastructure etc before th
by lostsock 12y ago
500 employees * lets say $150,000 per employee * 6 years is only $450,000,000.
That leaves ~$150m from previous rounds to spend on infrastructure etc before they need to raise more in the latest round.
- mwcremer 12y agoConventional wisdom is that an employee costs the company twice their salary (insurance, facilities, etc.) So it's closer to $1 billion.
- lostsock 12y agoI expect that they would be paying each of their 500 employees less than $150,000 yearly salary so had inflated that price to include the other expenses involved in hiring someone. Perhaps it is a little on the low side but if you also factor in that Pinterest wouldn't have been employing 500 people since 2009 I'd hazard a guess $450m is on the high side, not the low, of their actual employee expenses.