1 - Having too many people is more an indicator that they hired too fast or more than they could sustainably afford rather than indicating anything about their inherent monetization strategy and approach. Every company has a ceiling somewhere, even if it's getting acquired by Microsoft for $7.5B. That's a pretty nice ceiling to have.

2 - That seems fine and besides the point... Google is massive. Google Cloud (excluding the half that comes from G Suite) brings in $2B per year in revenue. That might only be a few percent of Google's overall, but a few percent of $80B is still a massive number.