In a bid to uplift workplace morale, Intel has announced the return of free coffee and tea at its offices after previously cutting these perks as part of a broad cost-reduction effort.
Intel’s recent decision to reinstate free coffee and tea aims to enhance employees’ daily routines, following the company’s substantial cost-cutting measures over the past year. The internal announcement underscored the importance of small comforts at work, acknowledging that while Intel faces ongoing cost pressures, bringing back beverages is a “meaningful” step toward fostering a supportive workplace culture. However, the familiar complimentary fruit will not return, disappointing some employees.
These adjustments come after a challenging period for Intel, one of the tech industry’s long-standing giants. Intel, renowned for its pivotal role in the personal computer boom of the 1990s, has faced multiple strategic setbacks in recent years. Shifting priorities and missed opportunities allowed competitors to seize major market advancements. For instance, former Intel CEO Paul Otellini admitted in 2013 to regretting Intel’s decision to pass on a deal with Apple in the early 2000s to manufacture chips for the iPhone. Intel reportedly viewed the projected volumes as inadequate to justify the costs—a decision that allowed Apple’s mobile chip market to flourish independently.
Another missed opportunity came in 2017 when Intel declined to invest in OpenAI, now a major player in artificial intelligence. OpenAI initially sought Intel’s investment to reduce its dependency on Nvidia chips and build its hardware infrastructure, yet Intel’s then-CEO, Bob Swan, doubted the near-term viability of AI, according to a Reuters report.
Beyond strategic missteps, Intel has also struggled with manufacturing delays, including setbacks with its 7-nanometer chips in 2020. These delays have allowed competitors like Samsung and TSMC to gain an edge, intensifying Intel’s drive to implement cost-saving measures. In August, the company announced a plan to lay off 15,000 employees through voluntary separations and other workforce reductions. Additional cuts were made to employee benefits, such as reduced reimbursement for internet, phone, and commuting expenses.
In September, Intel informed some offices in Oregon that beverages and fruits would no longer be complimentary. According to Business Insider, a former employee said, “That’s petty, right? How much does one piece of fruit per day cost?”