Alphabet Inc, the parent of Google, saved 268 million USD in expenses from company promotions, travel, and entertainment during the first quarter compared to the same last year, primarily due to Covid-19, according to the company filling.
Before the 2nd wave, people booked travel trips and hotels online, which helped Google’s advertising business. Google employees, working from home and not traveling as much on the company dime, are also good for Google’s business.
Annual basis, the company will save more than 1 billion USD. In its annual report, Alphabet said that advertising and promotional expenses dropped by 1.4 billion USD in 2020 as the company reduced spending, paused or rescheduled campaigns, and the company organized some events fully digital due to the pandemic. Simultaneously, travel and entertainment expenses fell by 371 million USD.
The savings offset many of the costs that came with hiring more employees. And the pandemic prudence enabled the company to effectively keep its marketing and administrative expenses flat for the first quarter, despite increasing revenue by 34 percent.
Google is well-known for perks such as massage tables, catered cuisine, and corporate retreats, which have influenced much of Silicon Valley’s work culture. Most Google staff have worked from home and without those perks since March of 2020.
Chief Financial Officer Ruth Porat said that the company plans a hybrid work model, spacing staff less densely than before covid. Google will continue to invest in real estate across the world. The company has already declared permanent work-from-home for many of its employees across various locations and planning to return to the office for some employees later this year.
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