With the COVID-19 pandemic extending to more than a year, people are still working from home since over a year. A report in Bloomberg has estimated that Mountain View, California-based giant Google is saving a lot of money as employees are working from home. According to the report, Google parent Alphabet saved $268 million (roughly Rs 1,987 crores) in expenses from company promotions, travel, and entertainment in Q1 2021, as compared to the same period a year earlier. The report cited a company filing as saying that these savings come as a result of COVID-19 primarily. Given that the quarterly savings come at $268 million, it brings the annual savings to more than $1 billion (roughly Rs 7,400 crores) for the tech giant.
Alphabet, in its annual report also said that the advertising and promotional expenses dropped by $1.4 billion (roughly Rs 10,360 crores) in 2020 as the company reduced spending, paused or rescheduled campaigns, and changed some events to digital-only format due to the pandemic. Travel and entertainment expenses fell by $371 million (roughly Rs 2,750 crores) in 2020. The savings offset many of the costs that came with hiring thousands of more workers, the Bloomberg report said. And the pandemic prudence allowed the company to keep its marketing and administrative costs effectively flat for the first quarter, despite boosting revenue by 34 percent.
Google is known for the perks it provides its employees in its offices which range from massage tables, catered cuisine, corporate retreats, and the likes. However, all of that has been on hold for the past year due to the COVID-19 pandemic, allowing the company to save a significant amount of money.
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