Facebook boosting London headcount

Facebook (FB) recently opened its new London headquarters, signaling that it has not lost its appetite for the UK (EWU), despite the country’s decision to step out of the European Union (EZU).

The new London office is Facebook’s biggest engineering center outside the US (SPY). Facebook plans to create an additional 800 jobs at its new London office, and this addition would see its total number of employees in London rise to 2,300. The company closed 3Q17 with just over 23,000 employees worldwide.

Facebook Opens London Office, Outlines Mission

Alphabet (GOOGL), the parent of Facebook rival Google, had just over 78,000 workers on its payroll worldwide at the end of 3Q17. Google also said last year that it would be building a new London headquarters that would result in 3,000 new jobs by 2020.

Overseas revenues

Facebook and Alphabet look to international markets such as the UK for a large portion of their revenues. In 3Q17, for instance, Facebook generated 51.3% of its total revenues outside the US. Alphabet’s overseas businesses, which include its UK operations, contributed 53.4% of its top line in 3Q17.

Startup incubator

Facebook’s London team works on products like its enterprise platform Workplace and VR (virtual reality) systems. The company has a hand in the hardware market through its Oculus VR headsets.

Facebook’s London hub also includes a startup incubator known as LDN_LAB. Through the incubator, Facebook experts would mentor the UK’s tech startups, potentially helping expand the market for the company’s online services in the UK. Remember, Facebook generates most of its revenues from online advertising services.

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