Besides programmers there is probably a small army of sys admins to handle their data centers in additional to daily operational IT, business development folks working with partners, the entire ad/sales platform, lawyers and accountants. Plus all of the facility staff for that crazy office (kitchen staff, janitorial, gardeners, etc).
I agree though. That is a lot of people and it's hard to wrap my brain around that since I work at a very small software company of less than 10 people.
http://www.google.com/intl/en/about/products/
1000 employees per product (many of them small) seems asinine to me. I could definitely be wrong, but this seems like extremely low productivity. Does anyone have any insights into this?
At the time Instagram was bought by Facebook, (and still I think) they didn't have any kind of ads and thus no need for sales people and a reduced need for engineering, product management, biz dev, etc. as well.
Media outlets hadn't really picked up on Instagram yet (at least, not as a tool to use themselves), so no need for media relations people. They didn't really need biz dev people yet like Twitter certainly does. (e.g. you need people to make the integration of Twitter in other platforms like iOS and OS X happen)
Also, Twitter is older than Instagram. Over time, if success is still going, it's somewhat normal to increase your staff just because there are things you can improve all over the place (product-wise as well as company-wise).
And now that Instagram is part of another company, it's hard to compare the numbers since they might take advantage of Facebook resources here and there which are hard to account for.
I don't know why they need 900+ employees though, there are probably good reasons for it.
Now, once you need to generate revenue, you will need to add people (a lot of them) for sales and support. It gets worse if the revenue model doesn't prove to work well, then you'll need to hire more to try out new things in the hope that you get to something before your funding runs out.