Intel told employees this week that it will bring back free coffee and tea at its work sites, one of many benefits the chipmaker eliminated last summe

Intel brings back workers’ free coffee, seeking to stem morale decline

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2024-11-09 01:30:02

Intel told employees this week that it will bring back free coffee and tea at its work sites, one of many benefits the chipmaker eliminated last summer as it sought to slash $10 billion from its annual budget.

“Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines,” Intel wrote on its internal messaging forum, called Circuit. “We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture.”

Employees say privately that morale has been devastated by Intel’s poor financial performance and by cutbacks aimed at returning the business to profitability.

The chipmaker is eliminating 15,000 jobs this fall through layoffs, buyouts and early retirement offers. Intel laid off 1,300 Oregon workers last month and more than 1,000 others at sites in California, Arizona and Texas.

In addition, Intel permanently grounded its air shuttle that flew workers between its offices in Oregon and other western states. And the company scaled back the duration of its employee sabbatical while raising the threshold to qualify, from four years at the company to seven.