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The four large-cap Internet companies– Google, (NSDQ: GOOG) Yahoo, (NSDQ: YHOO) eBay, (NSDQ: EBAY) and Amazon–collectively added more than 5,600 net new employees in Q3, and Lehman analyst Doug Anmuth’s Internet Inside Weekly (PDF only, not online) takes a closer look at hiring trends at these companies. Some interesting trends from it:
— Employee costs remain the largest component of overall cash operating expenses (Amazon (NSDQ: AMZN) may be an exception) and quarter-to-quarter changes in headcount can meaningfully impact cost structures, and therefore margins.
— During 3Q07, Google added 2,130 new employees, compared with 1,548 additions in 2Q07. This represented 15% growth Q/Q and 70% growth Y/Y. Google new employee numbers will fall in 4Q and into early 2008.
— Yahoo added 1,200 employees during 3Q, representing 10% growth Q/Q and 24% growth Y/Y. This compares with 700 new hires in 2Q, which represented 6% growth Q/Q and 18% growth Y/Y. Q3 hirings were primarily due to an organic increase within product development, though recent acquisitions were also a factor.
— Amazon added 1,400 net new employees during 3Q, well above the 600 hires added in last year