USA 
United Kingdom
Troubled chip-maker Intel is reinstating free coffee and tea offerings for employees after cutting back on workplace perks as part of its ongoing cost-cutting efforts.
The tech giant announced the decision through an internal message, acknowledging the importance of small comforts in maintaining workplace morale.
While the free beverages will make a return to Intel’s offices, the company confirmed that it would not be restocking complimentary fruits, which had previously been available to employees.
"That's petty, right? How much does one piece of fruit per day cost?" a former Intel employee was quoted as saying in Business Insider.
The announcement signals a shift towards balancing cost-saving measures against employee satisfaction.
"Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines," the internal message read. "We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture."
Why Intel is cutting costs
This decision follows Intel’s broader strategy to streamline operations after facing several industry setbacks. The company, once a dominant force in the tech sector, has struggled to keep pace with emerging competitors and in particular with the advancing AI sector.
The company missed key opportunities, including a major oversight in the mobile chip market during the 2000s, which saw Apple and Nvidia surge ahead. Further missed chances in AI development and delays in chip production also contributed to the company’s declining market position.
In response, plans were announced in August to reduce its workforce by 15,000 through voluntary separations and layoffs. The company also introduced cuts to employee benefits, including reductions in reimbursements for internet, phone, and commuting costs. The move was part of a broader effort to address its financial challenges as the company navigates a rapidly changing technology landscape.
Maintaining employee morale
Despite the difficulties, Intel's beverage U-turn is a recognition of the value of workplace benefits, even at a minor level. Experts in employee wellbeing suggest that seemingly minor perks can significantly impact morale and workplace culture. High employee morale is often closely linked to productivity and overall company success. In times of financial strain, maintaining benefits can help boost employee satisfaction and loyalty, even if it is only a small gesture.
The decision to reinstate some perks, in tough times, reflects the company’s understanding of the connection between workplace benefits, morale, and productivity. As the tech sector navigates cost reductions, it must consider their impact on levels of engagement and productivity in the workforce.
