Intel Resumes Free Coffee, Tea To Boost Morale After Laying Off 15,000 Employees

Intel is set to resume free coffee and tea for employees following substantial layoffs as part of broader cost-cutting measures. According to The Oregonian, the chip giant shared in an internal message that in-office beverages would return to boost employee morale.

"Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines," the message, seen by The Oregonian, stated. "We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture."

However, free fruit, a perk employees had come to expect, will not be returning, the report noted.

Intel, once a leader in the tech industry, has faced several setbacks that have affected its position. While it played a major role in the PC boom of the 1990s, its focus on personal computers left it trailing in the mobile chip market, enabling Apple to take the lead with the iPhone.

In 2013, former Intel CEO Paul Otellini admitted to regretting his decision to pass on a deal with Apple to produce chips for the iPhone, as Intel had assumed the volume wouldn't justify the costs.

Another missed opportunity came in 2017 and 2018, when Intel declined to invest in OpenAI, now a front-runner in artificial intelligence. OpenAI had sought Intel's backing to reduce dependence on Nvidia's chips and create its own infrastructure. Former CEO Bob Swan reportedly doubted the market viability of generative AI models, contributing to Intel's decision to forgo the investment.

Intel has also faced delays in manufacturing, such as setbacks in 2020 with its 7-nanometer chips, which allowed competitors like Samsung and TSMC to pull ahead.

As its valuation dropped, Intel ramped up cost-cutting measures. In August, it announced plans to reduce its workforce by 15,000 through voluntary separations and layoffs. That month, the company shared a presentation detailing cuts to employee benefits, including reductions in reimbursements for internet, phone, and commuting costs.

In September, Intel informed employees in at least one Oregon office that free beverages and fruits would be discontinued.

"That's petty, right? How much does one piece of fruit per day cost?" a former Intel employee told Business Insider.