Intel has announced the return of free coffee and tea in workplace breakrooms, partially reinstating a benefits program that costs approximately $100 million annually. The move comes as a small step to boost employee morale following significant cost-cutting measures implemented last year.
The chipmaker had suspended several employee perks in August 2023 after reporting a $1.6 billion loss. These cuts included removing complimentary beverages, fitness coaching services, and the company's private air shuttle service between facilities in California, Arizona, and Oregon.
In an internal message to employees, Intel acknowledged that while modest, the return of free hot beverages could meaningfully impact workplace culture and daily routines. The decision represents a partial reversal of earlier cost-reduction efforts under Chief People Officer Christy Pambianchi, who had previously stated the company could no longer sustain above-market benefits during challenging financial times.
The reinstatement occurs against a backdrop of broader changes at Intel, including modifications to employee stock bonus structures and an ongoing workforce reduction affecting approximately 15,000 positions. While free beverages may offer small comfort, they arrive as CEO Pat Gelsinger works to stabilize the company's position, with promising developments in Intel's 18A process node technology.
Despite this modest restoration of benefits, Intel continues to navigate financial challenges while working to maintain competitive compensation and workplace amenities. The partial return of the beverage program suggests a careful balancing act between cost management and employee satisfaction as the company pursues its turnaround strategy.
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