Tech companies are increasingly decoupling revenue growth from employee headcount, evident in their historical milestones. For instance, Apple achieved its initial $100 billion in revenue with 60k employees but needed only 17k for the next $100 billion. Similarly, Alphabet, Microsoft, and Meta show reduced employee requirements for revenue growth. Even Amazon, affected by pandemic-driven overhiring, added $200 billion in revenue with only 36k more employees. Overall, nearly $1 trillion in incremental revenue across several companies involved only 100k new hires, highlighting a significant trend before generative AI’s impact. This decoupling raises questions about the future workforce dynamics and potential implications for investments and the broader economy.
https://www.mbi-deepdives.com/the-great-decoupling-of-labor-and-capital/