Amidst the world getting severely impacted by the COVID scare, it seems as if the world has adopted virtual media. The businesses likewise, have chosen their employees to work from home. Work from home has become the new normal with top-notch firms to local startups adopting it.
American Internet Giant, Google had also shifted its operations to work from home. The pandemic allowed the company to keep its marketing and administrative costs effectively flat for the first quarter, despite boosting revenue by 34%.
It has been reported that Google parent Alphabet Inc. has saved $268 million in expenses from company promotions, travel and entertainment, compared to the same period a year earlier, primarily as a result of COVID-19. On an annual basis, that would be more than $1 billion, which is huge.
The giant has an enormous workforce across the globe and with all of its employees working remotely, Google managed to keep a lot of money unspent, the company can save a cosmic amount. Such a profit comes at a time when the company did not suffer much of a loss owing to the pandemic, rather the demand for internet-powered services saw a boost.
As per the company’s annual report for 2020, Alphabet said advertising and promotional expenses had dropped by $1.4 billion in 2020 due to a cut in spending, paused or rescheduled campaigns, and by modifying some events to digital-only formats. According to various reports, the company 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. Also, it has said that the company plans to invest in real estate across the world.
Founded in September 1998 by Larry Page and Sergey Brin while they were PhD students at Stanford University in California, Google was incorporated in California on September 4, 1998. Together they own about 14% of its shares and control 56% of the stockholder voting power through super-voting stock.
In October 2015, Google reorganized as a subsidiary of a conglomerate called Alphabet In, also becoming its biggest subsidiary. Sundar Pichai was appointed CEO of Google, replacing Larry Page, who became the CEO of Alphabet.