Work From Home Is Paying Off For Google, But Employees Are Wanted At The Office

While Google announced that workers will be returning to the office on Sept. 1, albeit in a “hybrid” model, its decision to allow employees to work from home during the pandemic has paid off in a big way.

Google’s parent company, Alphabet (GOOG), reported that it saved over $1 billion since its workforce went remote due to the COVID pandemic just over a year ago, according to The Hill.

A securities and exchange filing from the tech company showed that in the first quarter of 2021, Alphabet realized a $268 million savings due to cuts to travel, promotions, and entertainment, which it said in the filing was “primarily as a result of COVID-19.”

Revenue for the first quarter was up 34% for the company, according to its latest earnings report.

Prior to the pandemic, Google would regularly spend on perks for its employees that include massages, catered meals, and corporate retreats, Bloomberg reported.

Over the course of a year, more than $1 billion could be saved, which is in line with what Alphabet conserved in 2020, The Hill reported.

In its 2020 annual report, Alphabet indicated that it saved $1.4 billion in 2020 due to reduced spending, events that went virtual, and rescheduled or paused campaigns after it moved its workers off-campus. Travel and entertainment expenses decreased by $371 million, according to the report.

Google made the decision to move its workers to remote employment in March 2020 at the height of the coronavirus crisis.

In early April, Google announced that employees would be allowed to return to the office on a volunteer basis ahead of its previous Sept. 1 deadline in a limited capacity in some parts of the country.

The decision by Google to allow workers to return to offices comes as the COVID vaccine becomes readily available to the general public. According to the Centers for Disease Control and Prevention over 98 million people have been fully vaccinated against COVID-19, representing 29.5% of the U.S. population.

Shares of Google were trading at $2,392.89 as of premarket hours, up $12.98 or 0.55%.