Google parent Alphabet Inc could annually save $1 Billion with remote work. According to a company filing, working from home saved the company millions of dollars. Because employees worked from home for over a year, Google didn’t have to spend on travel, trips, and hotels due to the pandemic.
Remote work, before the pandemic, was attractive to companies because of the saving costs it implied. Remote companies didn’t need to spend on office spaces or supplies. Research even shows that remote companies could save up to $11,000 per remote employee.
Furthermore, big corporations usually spend millions in retreats, work travels, etc. And when the pandemic started, these costs were cut off. Google isn’t the first giant switching to remote work models. Twitter and Facebook already opened the way to remote models because of lower costs for the company and higher productivity.
This year, Google saved $268 million in expenses from company promotions, travel, and entertainment. Advertising and promotional expenses decreased by $1.4 billion in 2020 digital-only formats events and online campaigns. Travel and entertainment expenses dropped by $371 million.
Meanwhile, Google sales and marketing expenses increased $16 million in the first quarter ended March 31. Following these expenses, the company attributed the increase in $368 million to an 8% increase in headcount.
Even if Google is planning a return to the office in September, the company was one of the first big U.S. companies to allow remote work. Following this quarter report, Google looks at a hybrid model, leaving both opportunities available for employees.