In the last year, Google employees, like millions of others around the world, work from home and do not travel as much. It seems that this practice proved to be beneficial for the company.
During the first quarter, Google parent company Alphabet Inc. saved $ 268 million in corporate, travel and entertainment expenses compared to the same period last year, "mainly as a result of COVID-19", according to a statement the company's.
On an annual basis, this translates to over $ 1 billion. Indeed, Alphabet stated in its annual report earlier this year that advertising and promotional spending fell by $ 1,4 billion in 2020 as the company cut spending, stopped or rescheduled campaigns, and switched some events to digital. of pandemic. Travel and leisure expenses fell by $ 371 million.
The savings offset many of the costs involved in hiring thousands of workers. And the pandemic allowed the company to effectively maintain its marketing and administrative costs at the same levels for the first quarter, despite a 34% increase in revenue.
Google is famous for the benefits it offers to its employees, such as massage sessions, self-catering kitchens and corporate shelters, which have greatly influenced its work culture. Silicon Valley. Most Google employees have been working remotely and without these benefits since March 2020. However, Google intends to allow its employees to return to office later this year.
The Chief Financial Officer, Ruth Porat told investors that the company is designing a "hybrid" model, which will distribute staff less densely than in the past. Porat also said that Google will continue to invest in its properties worldwide.