Work From Home Helped Google Save Over $1 Billion In A Year

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It’s been more than a year since the Covid-19 pandemic struck and WFH, aka work from home, became a new norm. While this shift to remote work has its downsides, Google is benefitting from it, at least business-wise.

A recent filing by Google parent Alphabet revealed the company saved $268 million in expenses from travel, entertainment, and company promotions during the first quarter of 2021, compared to the same period last year. This translates to over $1 billion in savings in a year.

In its filing, Alphabet specifically mentioned that these savings have “primarily” come as a result of COVID-19. In its annual report earlier this year, the company had also said that advertising and promotional expenses dropped by $1.4 billion in 2020.


Those reductions in expenses were a result of reduced spending on travel and entertainment, paused or rescheduled campaigns, and a shift to online-only event formats during the pandemic. Alphabet’s travel and entertainment expenses alone fell by $371 million last year. So clearly, the Mountain View-based conglomerate is benefitting from its employees working from home.

This isn’t really surprising, to be honest. Google offers tons of perks to its employees when they work in the office. Those “notorious” perks include massage tables, catered cuisine, and corporate retreats. With most of its employees working from home for the past year, the company is saving all that money.

That said, Google also hired thousands of more workers over the past year. So the savings helped offset the costs involved in this. “The pandemic prudence allowed the company to keep its marketing and administrative costs effectively flat for the first quarter, despite boosting revenue by 34 percent,” Bloomberg reports.


Thanks to remote work policy, Google could save $1 billion last year

The COVID-19 pandemic has changed the way we work, learn, or entertainment. Most people started to work from home as of March last year due to travel restrictions around the world. Those restrictions are now lifting in some parts of the world. This means a boost for Google’s advertising business. However, the company’s employees are still mostly working from home and, as we can see, that’s beneficial for it as well. Google could save over $1 billion in expenses last year due to its remote work policy.

The company is said to be preparing to welcome back some of its employees to the offices later this year. It is likely to adopt a “hybrid” model, allowing employees to work from home as well as the office alternately. Hopefully, the world will be soon free from the still-ongoing COVID-19 pandemic.