During the first quarter, Google parent Alphabet Inc. saved
$268 million in expenses from company promotions, travel and entertainment,
compared with the same period a year earlier, “primarily as a result of
COVID-19,” according to a company filing.
On an annualized basis, that would be more than $1 billion.
Indeed, Alphabet said in its annual report earlier this year that advertising
and promotional expenses dropped by $1.4 billion in 2020 as the company reduced
spending, paused or rescheduled campaigns, and changed some events to
digital-only formats due to the pandemic. Travel and entertainment expenses
fell by $371 million.
The savings offset many of the costs that came with hiring
thousands more workers. And the pandemic prudence allowed the company to keep
its marketing and administrative costs effectively flat for the first quarter,
despite boosting revenue by 34%.
Google is notorious for perks such as massage tables,
catered cuisine and corporate retreats, benefits that have influenced much of
Silicon Valley work culture. Most Google staff have worked remotely and without
those perks since March of 2020.
However, Google plans to return to the office later this
year. Chief Financial Officer Ruth Porat told investors the company is planning
a “hybrid” model, spacing staff less densely than before. Porat also said
Google will continue to invest in its real estate across the globe.
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