Intel Restores Free Coffee Amid Cost Challenges: A Small Gesture for Morale Boost?

In a bid to boost employee morale amid ongoing financial challenges, Intel has reinstated its free coffee and tea program for its employees. The decision, announced internally through the company’s messaging platform, Circuit, reflects a desire to provide small comforts for employees, even as the company grapples with financial pressures.

The company acknowledged that “although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines. We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture.”

This move follows a series of cost-cutting measures that have impacted employees in recent months, including a massive layoff of over 15,000 jobs, the grounding of the company’s air shuttle service, and the elimination of free fruit last summer. While the free coffee and tea program is back, Intel has maintained its commitment to reducing expenses and has not restored the free fruit program.

Privately, employees have shared with The Oregonian that the company’s recent financial struggles and cost-cutting measures have significantly impacted morale. In a previous meeting, employees had inquired about the possibility of reinstating the free coffee program, but were informed it was not feasible at the time.

Intel’s Chief People Officer, Christy Pambianchi, explained that the company had been spending $100 million per year on free and discounted food and drinks but could no longer afford to continue this practice. Pambianchi stated that “Until we get into a better financial health position, we need to be suspending those”.

While the return of free coffee is a small step, it demonstrates Intel’s recognition of the importance of employee morale and its efforts to find ways to support employees during challenging times. However, the company faces an uphill battle in regaining employee trust and confidence following significant cost-cutting measures.

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