Intel is reinstating free coffee and tea at its work sites, a popular employee perk it had cut last summer as part of a $10 billion cost-saving plan. This gesture, while small, comes at a time when Intel employees have been dealing with a series of benefit reductions and job cuts, all aimed at stabilising the company’s finances.
In a message posted on its internal employee forum, Circuit, Intel acknowledged the impact of the cost-cutting measures on employee morale. “Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines,” Intel wrote. “We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture.”
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Despite this reinstatement, Intel did not announce the return of other perks, like free fruit, which was also cut last year, reports Oregonian.
Many employees have expressed concerns about the company’s financial difficulties, noting that morale has taken a hit. Intel is in the process of eliminating 15,000 jobs through a combination of layoffs, buyouts, and early retirement offers, with 1,300 layoffs in Oregon alone last month. Other layoffs have affected workers in California, Arizona, and Texas. Additionally, Intel has grounded its employee air shuttle, which previously helped workers commute between its Oregon site and other offices in western states.
Addressing the question of the coffee perk last week, Intel executives told employees it wasn’t coming back soon, with Intel’s chief people officer Christy Pambianchi pointing out that Intel used to spend $100 million a year on free and discounted food and beverages. “Until we get into a better financial health position, we need to be suspending those,” she said.
However, Intel reversed its decision, committing to bring back free coffee and tea. The decision was likely made to boost employee morale, which has been affected by recent changes and uncertainty around job security.
This recent change is a small but symbolic gesture to support Intel’s workforce during a challenging time, as the company continues to strive for financial recovery and stability.