Intel, reeling from substantial layoffs and budget cuts, is attempting to boost employee morale by reintroducing free tea and coffee at its facilities. According to TechSpot, despite recent cuts affecting 16,500 jobs and stripping employees of various perks, this small comfort is being brought back to soften the impact of Intel’s austerity measures.
Intel’s financial strain has led to significant cuts, with over 2,000 layoffs in the U.S., particularly impacting workers at its Hillsboro, Oregon site, where 1,300 employees face job losses. These cuts follow Intel’s disappointing second-quarter results, as the company grapples with reduced revenues, removal from the Dow Jones index, and a lawsuit over two generations of CPU hardware issues.
Remaining Intel employees are facing reductions in benefits, including changes to their stock purchase program and cuts to sabbaticals. The Intel shuttle service, which connected Hillsboro, Silicon Valley, and Arizona, has been permanently grounded. Even small perks, such as gym fitness coaches and complimentary fruit, have been eliminated from Intel’s workplace wellness offerings.
However, the absence of hot drinks sparked enough discontent for Intel to reconsider. This week, the company informed staff through its internal forum, Circuit, that free tea and coffee would be restored. In the message, Intel acknowledged the “small comforts” that contribute to daily routines, describing the gesture as a “small but meaningful step” to support workplace culture.
Just days prior, Chief People Officer Christy Pambianchi had announced Intel was cutting back on all free food and beverages, revealing that the company spent $100 million annually on these provisions. Intel’s quick reversal highlights the value of small morale boosters in a challenging corporate climate.
Although the return of free coffee may be welcomed by some, others might find it insufficient, given other cuts, including recent changes to stock bonuses. As Intel navigates ongoing financial challenges and a high-profile CPU lawsuit, U.S. policymakers are reportedly considering contingency plans to support the embattled tech giant.
