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Deciphering Alphabet’s Hiring Practices

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Alphabet hires more than 1,600 workers

Alphabet’s (GOOGL) headcount continues to increase. The company recently reported that it finished 2Q17 with 75,606 employees, implying that it hired 1,614 new workers during the quarter.

Although Alphabet has shuttered or scaled down some operations and let go of some employees to control spending, its headcount has increased steadily over the last several years. Alphabet’s headcount has nearly doubled since 2013.

This increase has been matched by an increase in the company’s expenses. Alphabet’s operating expenses totaled $66.6 billion in 2016, compared with $40.1 billion in 2013. The company’s top and bottom lines have taken a similar trajectory over the same period.

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Alphabet’s hiring trends

The chart above shows how Alphabet’s employee population has increased over the last few quarters. The majority of workers that Alphabet has hired in recent quarters have been engineers and product managers. 

The company’s Cloud segment has seen the largest increase in headcount. Cloud, which falls under Alphabet’s Google unit, had the largest employee increase for its technical and sales roles.

Alphabet’s big bet on cloud

Cloud is one of Alphabet’s priority businesses because of its impressive prospects. About 5% of qualifying workloads are said to have moved to the cloud, implying enormous growth potential for cloud providers such as Google, Amazon (AMZN), Microsoft (MSFT), Oracle (ORCL), and IBM (IBM).

Alphabet tends to add more employees during 3Q as it prepares for the holiday season and brings new college graduates on board.

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