Alphabet said that its advertising and promotional expenses dropped by $1.4 billion in 2020 due to reduced spending, paused or rescheduled campaigns and digital-only event formats
Work from home has proven to be a boon for a lot of employees. It has cut travel time, saved money, allowed one to dedicate more time to family and manage households better. Turns out not only employees, but Google too has also benefitted from the work from home routine. The company saved around $1 billion as employees worked from home amid the pandemic.
During the first quarter, Google parent Alphabet Inc saved $268 million in expenses from company promotions, travel and entertainment, compared to the year-ago period, as mentioned in a company filing. On an annualised basis that would be over $1 billion.
According to a report in Bloomberg, Alphabet said that its advertising and promotional expenses dropped by $1.4 billion in 2020 due to reduced spending, paused or rescheduled campaigns and digital-only event formats. Travel and entertainment expenses fell by $371 million.
The report states that Google used the savings to offset costs incurred in hiring new talent that were 'thousands' in numbers. Marketing and administrative costs in the company remained flat too because of the pandemic.
However, unlike many other tech companies, Google has said that it will open its offices in most locations around September this year. While this depends on the COVID-19 situation, it is likely to happen as countries recover from the pandemic. Google said it will go for a 'hybrid' model. Employees will, additionally, sit with ample space in between to reduce density in premises, said Chief Financial Officer Ruth Porat. Porat also said that Google will continue to invest in real estate across the globe.
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