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After Making 15,000 Job Cuts, Intel Tries To Boost Morale Of The Employees With Free Coffee And Tea

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Intel has brought back free coffee and tea at its work sites, a perk that was eliminated last summer as part of the company’s $10 billion annual cost-cutting initiative, according to a report by The Oregonian. This move is seen as a small but meaningful effort to boost employee morale following recent budget reductions.

In a message to staff on its internal platform, Intel acknowledged ongoing cost challenges but emphasized the importance of small comforts in daily routines. The company described the return of free coffee and tea as a modest but meaningful effort to support workplace culture. The report added that free fruit, once a common employee perk, will not make a return.

For the unversed, in October, Intel announced plans to cut over 2,000 jobs in the United States, part of the broader 15,000 layoffs revealed by CEO Pat Gelsinger in August. At that time, the company stated that 1,500 employees would be affected through a combination of voluntary separations and layoffs. In addition to the workforce reductions, Intel also scaled back several employee benefits, including reimbursements for internet, phone, and travel expenses.

In September, Gelsinger announced plans to separate the company’s chip-making and design operations as part of new cost-cutting measures and efforts to improve overall efficiency. According to Livemint, Gelsinger stated, “Increasing the separation between the two operations will allow the manufacturing arm to get financing independently, allay customer concerns about its independence, and bring it more culturally in line with a contract chip maker.”

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Intel, once a dominant player in the tech industry, has experienced several challenges that have impacted its market position. Although it was a key force during the 1990s PC boom, its focus on personal computers caused it to fall behind in the mobile chip market, allowing Apple to take the lead with the iPhone.

In 2013, former Intel CEO Paul Otellini acknowledged regretting the decision to decline a deal with Apple to produce chips for the iPhone, as Intel had underestimated the potential demand.

In 2017 and 2018, Intel missed another opportunity by declining to invest in OpenAI, now a leader in artificial intelligence. OpenAI sought Intel’s support to reduce its reliance on Nvidia and develop its own infrastructure. However, former CEO Bob Swan reportedly questioned the market potential of generative AI models, leading Intel to pass on the investment.

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