The entire world went into a complete lockdown last year to prevent the spread of the coronavirus epidemic.
This forced all employees of small and large companies to work from home. Work from home has become the new normal for corporates.
Tech companies, especially Google, Apple, Facebook, Twitter, etc., have been able to cut costs in a variety of ways and save a large chunk of revenue.
Google has saved $ 1billion that is about Rs 7,400 crore due to the work from home model. Google said that it was a “particularly Covid-19 result” in a company filing. All the expenses were cut off due to all offices around the world were closed.
Read More: Best Low Investment Business Ideas
Google is known for over boarding in terms of providing privileges to its employees, including massage tables, dining options, and exotic vacations. Since most employees were at home, Google succeeded in keeping a lot of money unused.
According to a Bloomberg report, Google’s parent Alphabet saved 268 million in the first quarter, on promotions, travel, and entertainment compared to the previous year.
Alphabet estimates that Google’s advertising spending fell by $ 1.4 billion in 2020 due to digital events. Travel and entertainment costs fell by $ 371 million. Google reportedly used the savings to select new ones.
Due to the pandemic, the marketing and administrative costs of the company were very low.
However, unlike many other tech companies, Google said it would open more offices in September this year, depending on the situation.
Google’s Chief Financial Officer Ruth Porat said Google is planning to introduce a “ Hybrid Model” that would expand the workspace and allow employees to sit far enough and work without any worries.
Ruth Porat said Google will also continue to invest in real estate around the world.
Also Read: Satya Nadella and Sundar Pichai assure aid amid covid-19 crisis