Facebook has 86% gross profit margins.
Google's are a little lower but still incredible, at 60%.
For the most part, they print as much profit as they want to. Google could get rid of half of their staff and just print $40-$50 billion per year in profit off of search (while keeping various critical moat pieces like Android). They have nearly 80,000 employees now, the majority of that is a combination of bloat and efforts at expansion into other non-search things.
To put into perspective how hilariously profitable Google (the search business) is, they're now capable of doing $35 to $40 billion per year in operating income. Last quarter they generated $8.7 billion in operating income for that segment. Google's (search biz) capital expenditures were a mere $3.5 billion out of $27 billion in sales. If they cared to do it, they could push margins to the ceiling.
Entry-level engineers already live far away with roommates. What are they going to do if salaries fall? SROs? Bunks? Doesn't seem like people who are generally capable of knowledge work would take that deal.