Following the outbreak of the COVID-19 pandemic, Google said in a recent filing that it had saved about $1 billion in 2020 due to lower travel and entertainment expenses as most employees resorted to working from home.
The work-from-home model was quickly adopted by large corporates across the planet as a way to continue operations during the pandemic. Since the outbreak of the COVID-19 infections early last year, work from home became a neighborhood of the work culture. The experts have debated on the problems round the work from home culture including the concerns about eroding work-life balance among others.
Early adopters of the model, such as Facebook, Apple, Twitter, Microsoft and Google, have reaped the benefits of lower costs as their workers worked from home.
According to Bloomberg, travel and entertainment costs were also reduced because the pandemic had caused an entire lockdown of all such services. This meant that the cash that Google was spending for its employees' travel expenses along side other promotional and entertainment costs led to a $268 million saving within the first financial quarter of the year in comparison to an equivalent period last year. Taking this same figure on an annualised period, since the lockdown and pandemic were in effect for the higher a part of the year, Google managed to save lots of around $1 billion. Google said during a company filing that this was "primarily a results of COVID-19."
Google's revenue increased by 34% as the majority of its 1.3 lakh workers around the world worked from home, and the demand for internet-based services rose dramatically.
In its own filing, Alphabet, Google's parent company, claimed that the company saved $1.4 billion in just advertisement and promotional expenditures last year. Administrative costs and expenditures were also kept low since most offices were closed and business was conducted virtually, according to the study.
The new savings and increased revenue were wont to bolster Google's already massive workforce and providing additional benefits to its employees.
While other tech companies such as Twitter, Apple and Facebook have asked their employees to work from home or have yet to reveal their working models for the year, Google has already revealed that it will reopen its offices around the world this year. Of course, this is contingent on the state of the pandemic in each individual nation. Its Silicon Valley offices, on the other hand, are likely to open because about 20% of the population is completely vaccinated, and over 40% have received at least one dose of the COVID-19 vaccine.
With offices reopening, during a hybrid-style workplace with social distancing norms still being maintained, Google will perhaps not be saving such staggering amounts this year.
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