New Delhi:- In an effort to cut capital investment from its books, Google spent more than half a billion dollars reducing office space.

As reported by SFGate, the Mountain View-based tech giant spent $633 million to shrink office space in the first six months of 2023, based on parent company Alphabet's Q2 report released last week. There could still be more expenses this year, although most of the spending took place in the first quarter of the year.

During an earnings call in February, Google's CFO, Ruth Porat, who is leaving, predicted existing leases would cost the company $500 million in the first quarter.

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"We're working to ensure that we invest effectively in real estate and that our investments align with the current and future needs of our hybrid workforce," Ryan said. Lamont, a Google spokesperson told SFGate. Last month, Google put on the market to sublease more than 1.4 million square feet of office space in the Bay Area, including a 736,000 square foot lot in Sunnyvale.

The company not only reduced office space but also halted major projects in the Bay Area. He suspended the Downtown West project in San Jose as the city's office market continued to stagnate with a trend back toward lagging office space.

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However, not all major projects stand still. Google went ahead from Mountain View to begin development on a 153-acre mixed-use site just south of its headquarters. The company plans to build 7,000 housing units and 3 million square feet of office space.

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According to the sources and looking forward at the finance of Google they have spend atleast a half a billion dollar on the layoffs of the employees as they are on their way to efficiently make investments in the Real Estate and also on some of the future plans.