Sending employees home to work pays off. At least this has happened with Google, which has indicated that during the first quarter of the year it saved 268 million dollars compared to the same period of 2020.
That supposes a saving of more than 1,000 million a year if we extend it to a whole year. Only in travel expenses $ 371 million was saved, and spending on things like free food for those who work on campus regularly have also been cut sharply.
No travel, less promotions
Although, of course, the expenses in their own offices affect this cost reduction, the greatest impact has been the cuts in the budget dedicated to promotions and advertising of the company, which fell $ 1.4 billion in 2020 when pausing or postponing campaigns.
Although this has led to significant cuts, teleworking has benefited the company financially, which has thus avoided all the expenses that travel entails business.
This saving is common to an entire sector that has seen paralyzed by the pandemic In this sense, and from in-person events we have moved on to a model in which large and small meetings in the world of technology have been carried out virtually.
Google has actually offset those savings by hiring thousands of new employees. The accounts come out, no doubt, and revenue is up 34% in the first quarter of the year.
Despite those savings, in Google they have already indicated that their intention is that people return to work in your offices soon. CFO Ruth Porat indicated to investors that a hybrid model with slightly less heavily used offices than before was being considered.
Via | Bloomberg