- Alphabet Inc. has announced that it saved $268 million in expenses during the first quarter.
- The company had announced that advertising and promotional expenses dropped by $1.4 billion in 2020.
- Google plans to return to office later this year.
As employees worked from the confines of their homes in most of 2020 due to the COVID-19 pandemic, Google made huge savings in associated costs. The company’s Q1 2020 filings revealed that it saved as much as $268 million (about Rs 2,000 crores) in costs related to travel, entertainment, and events and promotions, which it claimed was “primarily the result of COVID-19.” Extrapolate that to a year and Google is saving over $1 billion (about Rs 8,000 crores) in the year. And these costs don’t even include the perks that employees are not able to use.
And a look at the company’s annual returns from earlier this year shows that Google saved almost $1.77 billion (over Rs 13,000 crores) in the last year in travel as well as advertising and promotional expenses as it moved events online. The pandemic also allowed the company to keep its marketing and administrative costs flat for the first quarter, despite boosting the revenue by 34 percent.
Google employees have worked remotely since early last year without any perks like corporate retreats, catered cuisine, massage tables, and other benefits that are widely popular in Silicon Valley. However, that might change soon as Google plans to return to office later this year. Chief Financial Officer, Ruth Porat has informed investors that the company is planning a “hybrid” model, spacing less densely than before. That, nonetheless, means Google will continue to save money on many of the perks it used to spend on.