The pandemic situation has extended more than a year and it has become normal to work from home, while this shift to remote work has its downside, Google is taking many benefits from it as a part of the business. Now, many people are fed up staying home so they want to make a trip as the restrictions of COVID-19 are lifting slowly, more people are booking hotels to their favorite travel destinations and Google is taking a huge benefit of its advertising business. However, the employees of Google are not making trips so much as they would normally on the company’s dime and they are still working from home and that is somehow good for the company. The company had to bear promotional and entertainment expenses on normal days which it is now saying due to the pandemic situation.
According to the company’s filing, during the first quarter the Google parent Alphabet saved around $268 million due to the reason of its employees are working from home and the company is saving this cost for promotion and entertainment expenses compared to the same period of last year and if this expense is calculated on an annual basis, this would be more than $1 billion that the company has saved so far. Alphabet said in an annual report previously that the promotional and advertising expenses are fallen by $1.4 billion in spending as the company has reduced its spending on expenses, paused, and reschedule campaigns and it has also transformed some of its events into virtual form only due to pandemic situation and this helped the company saving travel and entertainment expenses up to $371 million.
Some people are also getting used to working from home and they are spending more time on their work but on the other hand, the productivity of the work is decreasing as per the latest report. The savings that the company made offset the hiring cost that company incurred during the recruitment of thousands of workers. The pandemic prudence allowed Google to keep its marketing and administrative expense efficiently flat for the first quarter even though enhancing the revenue by 34%. However, Google is planning to open its offices at the end of this year. The chief financial officer told that the company is now planning the hybrid model, arranging staff less compactly than earlier. The Chief financial officer further said that the company will keep focusing on investing in real estate all over the world.
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Read next: Google Is Adding A Line Of New Travel Related Updates In Order To Help Vacationers Plan The Prefect Trip
According to the company’s filing, during the first quarter the Google parent Alphabet saved around $268 million due to the reason of its employees are working from home and the company is saving this cost for promotion and entertainment expenses compared to the same period of last year and if this expense is calculated on an annual basis, this would be more than $1 billion that the company has saved so far. Alphabet said in an annual report previously that the promotional and advertising expenses are fallen by $1.4 billion in spending as the company has reduced its spending on expenses, paused, and reschedule campaigns and it has also transformed some of its events into virtual form only due to pandemic situation and this helped the company saving travel and entertainment expenses up to $371 million.
Some people are also getting used to working from home and they are spending more time on their work but on the other hand, the productivity of the work is decreasing as per the latest report. The savings that the company made offset the hiring cost that company incurred during the recruitment of thousands of workers. The pandemic prudence allowed Google to keep its marketing and administrative expense efficiently flat for the first quarter even though enhancing the revenue by 34%. However, Google is planning to open its offices at the end of this year. The chief financial officer told that the company is now planning the hybrid model, arranging staff less compactly than earlier. The Chief financial officer further said that the company will keep focusing on investing in real estate all over the world.
Read next: Google Is Adding A Line Of New Travel Related Updates In Order To Help Vacationers Plan The Prefect Trip
