Intel has announced the return of free coffee and tea at its work sites, reinstating a benefit that was cut last summer as part of the company’s efforts to reduce its annual budget by $10 billion, according to an Oregonian report. The decision marks a small but significant gesture aimed at improving employee morale in the wake of cost-cutting measures.
In a message shared with employees via its internal platform, Circuit, Intel reportedly acknowledged the continued financial challenges but emphasized the importance of these small comforts in supporting workplace culture.
“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,” the newspaper reported saying Intel wrote on its internal messaging forum Circuit.
The reinstatement of free beverages follows a series of tough cost-cutting measures announced by Intel.
Previous rounds of layoffs at Intel
In October, it said more than 2000 employees will be cut from the company in the Untied States. These job cuts are part of the 15,000 layoffs that were announced by Intel CEO Pat Gelsinger earlier in August. In August, the tech company said 1500 employees would be cut either through voluntary separation agreements and layoffs. Along with job cuts, the company also reduced several employee benefits, including reimbursements for internet, phone, and travel expenses.
While the company is still grappling with significant cost challenges, this move to bring back free coffee and tea reflects an effort to foster a more positive atmosphere for remaining employees.
Intel CEO lays out new steps
Laying out new steps to cut costs and bolster its chip-making division, CEO Pat Gelsinger in September announced that Intel would separate its chip-manufacturing and design operations.
“Increasing the separation between the two operations will allow the manufacturing arm to get financing independently, allay customer concerns about its independence and bring it more culturally in line with a contract chip maker,” Gelsinger said.
The raft of new measures, he added were part of an exercise to weather one of the most significant crises in the company’s five-decade history.
Source Link
