Following the layoff of approximately 15,000 employees and a series of cost-cutting measures, Intel has announced it will reintroduce free coffee and tea in its offices as a morale booster. According to The Oregonian, the chipmaker shared this decision in an internal memo, acknowledging the importance of small workplace perks for employee well-being.
“Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines,” read the memo, seen by The Oregonian. “We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture.” However, Intel noted that free fruit, once a popular perk, will not be returning.
Intel’s current struggles reflect a broader history of missed opportunities and delayed innovation. Although Intel was a major player in the PC boom of the 1990s, it struggled to capture a share of the mobile market, where Apple emerged as a leader with the iPhone. In 2013, then-CEO Paul Otellini revealed he regretted passing on a deal to produce iPhone chips, as Intel initially doubted the product’s market volume.
The company faced another critical missed opportunity in 2017–2018 when it chose not to invest in OpenAI, the AI pioneer that now competes with Intel for high-powered chip resources. Former CEO Bob Swan reportedly questioned the commercial viability of generative AI, a move that contributed to Intel’s decision not to pursue the partnership.
Production delays, such as setbacks with its 7-nanometer chips in 2020, allowed competitors like Samsung and TSMC to overtake Intel in advanced chip manufacturing. As Intel’s valuation dropped, it enacted several cost-cutting measures, including reducing workforce costs through voluntary separations and layoffs announced in August. In recent months, Intel also trimmed employee benefits, including reimbursements for internet, phone, and commuting costs.
In September, Intel announced the removal of free beverages and fruit in at least one Oregon office, sparking criticism from employees. “That’s petty, right? How much does one piece of fruit per day cost?” a former Intel employee commented to Business Insider.
As Intel navigates its current challenges, small steps like reintroducing free beverages aim to support a positive workplace culture during a period of substantial change.
