Intel is reintroducing free coffee for employees in an effort to boost morale and foster a more positive workplace atmosphere. According to The Oregonian report, the chipmaker informed its employees last week that it will bring back free coffee and tea at its work sites. The company eliminated free coffee and tea last summer as it sought to slash $10 billion from its annual budget.
What Intel said
In an internal messaging forum Circuity, Intel wrote “Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines.”
“We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture.”
At an all-company meeting last week, Intel’s chief people officer, Christy Pambianchi informed employees that the company had been spending $100 million each year on free and discounted food and drinks, a cost it could no longer sustain. “Until we get into a better financial health position, we need to be suspending those,” Pambianchi said, according to an account of the meeting reviewed by The Oregonian. Other benefits like complimentary fruits remain suspended.
Intel to cut 15,000 jobs
In August, Intel CEO Pat Gelsinger announced plans to eliminate over 15,000 jobs globally and reduce costs by more than $10 billion. The company aims to streamline operations in response to worsening financial conditions and increased competition in the semiconductor industry. It informed employees that benefits like eliminating or reducing reimbursements for internet, phone, and commuting costs will be cut.
As part of this, Intel initiated layoffs affecting over 2,000 jobs in multiple US states. An Intel spokesperson then confirmed that these job cuts are necessary steps to create “a leaner, simpler, and more agile company” positioned for long-term sustainable growth.