Business News: Google allegedly saves more than $1 billion a year thanks to remote work practices.
With the lifting of restrictions on Covid-19, more people are booking travel and hotels online, which is very good for Google’s advertising business. Google employees, however, are working from at home and don’t travel much for the company – and that’s good for your business too.
During the first quarter, Google’s parent company Alphabet Inc. saved $ 268 million in expenses from corporate promotions, travel and entertainment, compared to the same period last year, “primarily as a result of COVID-19,” according to a company statement.
On an annualized basis, that would be more than $ 1 billion. In fact, Alphabet said in its annual report earlier this year that advertising and promotional spending fell by $ 1.4 billion in 2020 as the company cut back on spending, paused or rescheduled campaigns, and tweaked some. events in digital-only formats due to the pandemic. Travel and entertainment expenses fell by $ 371 million.
The company also said that advertising and promotional spending fell by a whopping $ 1.4 billion due to reduced spending, suspended or rescheduled campaigns, and online-only events to announce its best Android phones. These savings have helped offset the costs of hiring thousands of new workers.
The huge savings aren’t really surprising, as Google offers a ton of perks to its employees, including massage tables, kitchen with catering, corporate retreats, and more. Google will allow its employees to continue working from at home until September, after which they will have to formally apply for remote work for more than 14 days a year. Like many other tech giants, Google will adopt a “hybrid” model for going back to the office, allowing employees to work at least three days a week in the office and from at home the other days.
Google is known for perks like massage tables, catered kitchens, and corporate retreats, which have influenced much of Silicon Valley’s work culture. Most of Google’s staff have been working remotely and without these perks since March 2020.
However, Google plans to return to the office later this year. CFO Ruth Porat told investors that the company is planning a “hybrid” model, which distributes staff less tightly than before. Porat also said that Google will continue to invest in its real estate assets around the world.