Sending employees home to work pays off. This happened at least with Google, which indicated that it saved $ 268 million in the first quarter of the year, compared to the same period in 2020.
This is assumed Saving over 1,000 million annually if we extend it for a whole year. Travel spending alone saved $ 371 million, and spending on things like free food for those who regularly work on campus has fallen sharply.
No travel, less promotions
Although the expenses in their offices of course affected this cost reduction, the biggest impact was Reductions in the budget allocated for promotion and advertising From the company that shed $ 1.4 billion in 2020 when campaigns were paused or postponed.
Although this led to significant discounts, remote work has benefited the company financially By doing so, you avoid all the expenses that travel entails a company.
This saving is common in an entire sector that has been paralyzed by the epidemic in this sense, and from personal events we have moved to a model in which large and small meetings are held in the world of technology. Actually executed.
Google has already compensated for these savings by hiring thousands of new employees. Accounts go out, no doubt, and 34% revenue increase In the first quarter of the year.
Despite these savings, Google has already indicated that its intention is that people Return to work in your offices soon. CFO Ruth Porat indicated to investors that a hybrid model with slightly less used offices is being considered than before.
Via | Bloomberg