Headcount at Google growing much faster than at Yahoo and MSN

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Google growing faster than Yahoo and MSN

March 6, 2006

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Headcount numbers for the three largest search engines prove that Google is growing at a much faster rate than Yahoo and MSN.

The three search engines have been growing at a fast rate since the year they started.

It is surprising to see that Microsoft is more than six times larger than Yahoo and eleven times as big as Google, at least in terms of employees.

Microsoft has been around for many years and consumes much of the statistics. Here are the latest numbers:

Google is growing much faster than Yahoo. Over the last two years, Google's average employee growth rate has been about 100 percent, while Yahoo's was at 34 percent, and Microsoft's was pegged at 10 percent.

If the current growth rates continued, Google would surpass Yahoo's headcount in 2007, and Google would be bigger than Microsoft in 2010.

This seems a little too optimistic to be true. It will likely become harder and harder for Google to double its headcount every year.

Microsoft grew 80 percent on average in the 1980s (49 percent if you don't consider 1981, when the company more than tripled in size).

For the 1990s, its average yearly headcount growth dropped to 24 percent.

An easy way to grow fast is to acquire companies. All three players have bought plenty of smaller businesses along the way. For example, Yahoo grew by 1000+ employees when it acquired Overture in 2003, thereby increasing its headcount by more than one-third.

In conclusion, let's have a look at how Wall Street values the employees of each company. With Friday's market caps, each Microsoft employee is worth $4.3 million. Each Yahoo employee is valued at about $4.7 million. And each Google employee is valued at approximately $19 million.

I'll leave the interpretation of these numbers up to you.

Source: Gabor CSelle.com

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