Here’s how much money Google is saving with employees working from home

Employees of all major firms are working from home to prevent themselves from catching Covid-19. While employees are getting more time in hand in WFH norms, employers on the other hand are saving big bucks that were normally spent in managing staff at physical offices. 

For instance, Google is likely to save more than $1 billion if WFH rituals continue in 2021. In its earnings report for the first quarter of 2020, Google’s parent firm Albhabet Inc. revealed that the company saved $268 million in expenses from company promotions, travel and entertainment when compared to its expenses in the same period last year. If the savings continue alike in the upcoming quarters then Alphabet can easily save $1 billion on an annualized basis. 

The tech giant had also stopped its several advertising and promotional expenses. Overall, the company’s expenses from these two departments plummeted by $1.4 billion in 2020. Meanwhile, Alphabet’s travel and entertainment expenses shrank by $371 million in Q1 2021. 

Moreover, in Silicon Valley, Google is known for pampering its employees with benefits such as massage tables, catered cuisine and corporate retreats. Since March 2020, Google stopped offering all such benefits as employees started working from their homes. 

However, all these savings might end soon, as Google is planning to open up its offices in the US, thanks to the reducing number of Covid-19 cases and vaccine optimism. During the investors call, Chief Financial Officer Ruth Porat told investors that the company is planning a “hybrid" model, in which employees will be provided with more personal spaces in the offices. Google is also likely to continue its investments in real estate across the world. 

 

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