Due to the epidemic, the tech companies sent employees home to work and thus settled the score. According to a recent projection, at least that's what happened with Google, saving 1 billion a year.
Accounts estimate that Mountain View (California) saved $268 million in the first quarter of the year compared to the same period in 2020.
Travel expenses alone, for example, have been cut by $371million, and spending on free meals for regular campus workers has been dramatically reduced.
The company is known for the benefits of its offices, which it has now cut high costs: free meals, game rooms, and corporate retreats.
Covid 19 restrictions are being lifted, which is why more and more people are starting to book online travel and hotels, which is great for Google's advertising business. However, Google employees are working from home and do not travel much on company money, and this is good for their business.
According to a company presentation, during the first quarter, Google's parent company, Alphabet, saved $268 million a year in the company's promotional, travel, and entertainment expenses, while according to the company's offer, "primarily As a consequence of COVID-19.
On an annual basis, this would translate to over $1 billion. In fact, Alphabet noted in its annual report earlier this year that advertising spending fell by $. 1.4 billion in 2020 as the company cut costs, created suspended or rescheduled campaigns, and more. Incidents converted to digital format due to epidemics. Travel and leisure spending fell by 371 million.
These savings cover many of the costs of hiring thousands of workers. And the precautionary measures against the epidemic allowed the company to effectively stabilize its marketing and management costs during the first quarter, despite a 34% increase in revenue.
Google Calendars is recognized for its massage tables, catering for all workers, and corporate retreat, which has inspired much of Silicon Valley's work art. Since March 2020, most Google employees have worked remotely and without these benefits.
However, Google intends to revert to the office following this year. Ruth Porat, the firm's chief financial officer, told investors that the company plans to build a "hybrid" model so that there is less space in the offices than before. Porat also noted that Google would continue to invest in real estate around the world.