The pandemic proved fatal for businesses around the world, however Google seems to have found a silver lining. During the year 2020, advertising and promotional expenses fell by $1.4 billion for Google, according to a report by Google’s parent company, Alphabet. This drop in expenses came as the company reduced spending, paused and rescheduled campaigns, and shifted some events to the digital world. Other than this, travel and entertainment expenses also fell by $371 million.How Google Saved a Billion Dollars During The Pandemic
In its quarterly report in the year 2021, Google reported a saving of another $268 million which amounts to more than $1 Billion annually. The company is known for its exquisite perks like massage tables, corporate retreats and catered cuisines. Unfortunately, for the employees, none of these perks could be redeemed during the pandemic. Google’s employees couldn’t travel on company expense either as they are working from home.
Google says the savings have compensated for the hiring of thousands of more workers. Google also increased its revenue by 34% during the pandemic while keeping its administrative and marketing costs to zero.
Although Google has saved big time from this pandemic, unlike other tech companies, it plans to return to office late September this year. Ruth Porat, CFO Google says that Google will adopt a hybrid model in offices, spacing employees at a greater distance to reduce density. He also said that Google will continue to invest in real estate. This shows that Google still prefers the idea of working from the office rather than at home even though it saved a lot of money. How Google Saved a Billion Dollars During The Pandemic
