- Intel reinstated free tea and coffee to boost employee morale after cutting various benefits during a restructuring effort to save costs.
- In order to save $10 billion, Intel has reduced its workforce by 15%, laying off 15k employees.
- While the company has been working to cut costs, reports indicate that its free food and beverage programs cost it $100 million annually.
Intel has brought back its free tea and coffee offerings in an attempt to improve employee morale and motivate them to be more productive in the workplace by providing them with more creature comforts.
Why it matters: While cost-cutting is necessary to improve profitability, offering basic comforts shows the company values its employees, which could help retain talent and improve productivity during tough times.
In an attempt to improve staff morale after the company’s restructuring to cut $10 billion from its yearly budget, Intel reinstated the free coffee and tea service that it had eliminated from its offices last year.
Employees at Intel have reportedly told the Oregonian in private that the company’s poor financial performance and the reductions made to regain profitability have severely damaged their morale.
In an effort to save costs, Intel had previously discontinued staff benefits like free fruit, drinks, workout equipment, and other in-house facilities. However, it has since brought back what appears to be its most affordable option.
Christy Pambianchi, Intel’s CPO, stated, “We really aren’t in a situation where we could continue to afford benefits and programs that are above market practice.” According to reports, the corporation loses $100 million a year because of free food and beverages.
By reducing its workforce by 15% and pursuing other cost-cutting initiatives, the corporation hopes to save almost $10 billion annually. The company’s most recent financial report showed that revenue fell 1% year over year to $12.8 billion, and it also forecasted weak performance for the upcoming quarter.
Even as Intel continues to struggle with costs, we recognize how important little conveniences are to everyday lives.
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[News Reporter]
Malik Usman is student of Computer Science focused on using his knowledge to produce detailed and informative articles covering the latest findings from the tech industry. His expertise allows him to cover subjects like processors, graphics cards, and more. In addition to the latest hardware, Malik can be found writing about the gaming industry from time to time. He is fond of games like God of War, and his work has been mentioned on websites like Whatculture, VG247, IGN, and Eurogamer.
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