Guess how many employees Facebook (Meta) has.
78,000.
(Estimated 45,000 to 55,000 in the USA)
Guess how many employees instagram had when it was bought.
13.
For 30 million monthly active users (MAUs).
Now do WhatsApp.
55 employees for 450 million active users.
So instagram had 3 million MAUs per employee and WhatsApp had 10 million MAUs per employee.
Facebook has 4 billion MAUs which comes out to 50,000 MAUs per employee.
So the businesses they run, instagram and WhatsApp, were 60x and 200x more efficient when MAUs should be inversely correlated with employees because of efficiencies of scale.
When Elon bought Twitter he cut roughly 80% of the staff.
After that they are sitting at 550 million MAUs and about 2,750 employees.
200,000 MAUs per employee for Twitter/X, just about 4x as efficient as Facebook/Meta.
I understand that Meta and X maintain a sales organization whereas WhatsApp and Instagram did not but is that really necessary?
I’ve spent mountains of money advertising with the big tech megacorps without interacting with their sales people or being sold.
In fact, I avoid them as much as I can, as I’m sure many others do.
Okay, so what explains this?
Why are these companies so massively over staffed?
My uninformed speculative guess is it’s all politics.
The owners would get politically targeted if they didn’t create jobs and the fact that they do gives them political power because the jobs are staffed by voters.
I understand how preference cascades work (look them up) but this is probably the underlying economic incentive engine behind why you get political monoculture at these companies.
It’s not just human social dynamics.
It’s because the jobs are fake because they’re just about government politics and that only works if the company votes all for the same party.
Explain X then.
How did they slash 80% of the jobs?
It was all politics.
Buy the DMs, fire the other side’s employees, and then turn the platform into the first right leaning major social network.
Think about which advertisers they lost in the process.
It was all the companies that generally oppose X’s politics right?
Why do governments hire so many people to do nothing?
Mainly votes.
You’re paying someone to vote to keep their job.
So you get to keep yours at government and maintain access to tax and money printing revenues.
The press is the fourth estate.
It is part of the government.
And social media and big tech is the press today.
So why would the same principles not apply?
All this stuff is fake.
Government is 40% of GDP.
An unelected body of bankers decide how much money to print every month.
We think of the country as this bastion of free market capitalism but in reality, while there are pockets of it at the low and medium scales, as soon as you get big you become enmeshed with the government.
Because it’s crazy powerful and has, effectively, infinite or nearly infinite resources.
Sorry guys buts it’s all a bunch of bullshit and probably has always been, and of course, was made much worse in 1971.
If I can say one more thing in this sleep deprivation induced, probably wrong and illogical, rant:
People do not understand how the machine works.
From economists to lawyers to business people.
There is a huge disconnect between people’s concepts of our system and how they actually work.
A top 1% in skill person will understand their niche but nothing outside of it and they cannot zoom out and understand the big picture.
Our brains were not set up to do that.
Anyways, have a nice day everyone.