- Intel had previously cancelled its free food and beverage programme as part of its $10 billion cost-savings plan, but has now reinstated free coffee.
- While free coffee is just a small initiative, Intel has also scaled back other employee benefits such as employee leave programmes and free fruit programmes.
What happened
Intel is endeavouring to reinstate free coffee for employees in an effort to boost morale during layoffs and cost-cutting measures. Intel, facing significant financial challenges, reinstated free coffee after initially cutting it as part of a $10 billion cost-saving strategy. Previously, the company had scaled back several employee benefits, including free food and leave programs. These cuts aimed to offset massive financial hits, such as a $15.9 billion impairment charge and a $2.8 billion restructuring charge. Despite solid sales, Intel still recorded substantial losses. Additionally, there’s uncertainty over future federal funding due to changes in political leadership, which may impact the company’s recovery plans.
Also read: Intel’s AI-chip aspirations dim amidst competitive storm
Also read: SpaceX faces allegations of firing employees who criticized Elon Musk
Why it is important
This news is significant because it highlights Intel’s efforts to counter low employee morale during a challenging period of layoffs and cost-cutting. The decision to bring back free coffee reflects an attempt to offer small perks as a way to boost workplace atmosphere after scaling back numerous benefits, including free food and employee leave programs. It also reveals the financial strain Intel is under, with substantial impairment and restructuring charges totaling billions. Furthermore, the uncertainty over federal funding due to political shifts raises questions about the company’s future growth and recovery plans.
For startups, it also serves as a lesson that while cutting costs is necessary for financial stability, maintaining employee satisfaction can be critical for long-term success, especially when trying to retain talent and foster a productive environment under economic pressure.
