- Intel is bringing free drinks to its employees at workplaces.
- As part of its cost-cutting efforts, the company said in September it would cut benefits.
- A series of setbacks, including missed opportunities with AI, have left Intel struggling.
Intel will once again offer free coffee and tea to its employees after cutting benefits as part of its cost-cutting efforts.
The chipmaker said free office drinks will return to workplaces in an internal message in an effort to improve morale, the Oregonian reported.
“Although Intel still faces cost challenges, we understand that small conveniences play an important role in our daily routines,” reads the first message from The Oregonian. “We know this is a small step, but we hope it’s a significant step in supporting our workplace culture.”
However, the complimentary fruit that employees were accustomed to will not be replenished, the newspaper reported.
Intel representatives did not respond to a request for comment from Business Insider.
Intel cut employee benefits and benefits after a series of setbacks
Intel remained a major player in the technology industry for decades, but a few missteps have thrown it off course.
Intel played an important role in the personal computer boom of the 1990s, mainly focused on PCs. However, it did not benefit from the boom in mobile chips in the 2000s, which allowed the iPhone and Apple to flourish.
Former Intel CEO Paul Otellini told The Atlantic in 2013 that he regretted passing on a deal with Apple to design and manufacture iPhone chips. The two companies did not reach a deal because Intel believed the volume would not justify the cost.
Intel missed another opportunity when, in 2017 and 2018, it declined buy a share in OpenAIwhich has emerged as a leader in the artificial intelligence race.
OpenAI wanted Intel’s investment so it could reduce its dependence on chips made by Nvidia, the new chipmaker and a major competitor of Intel, and build its own infrastructure, Reuters reported. The deal fell through in part because former CEO Bob Swan didn’t think generative AI models would hit the market anytime soon.
Intel told employees it would stop offering free drinks and fruit in workplaces. Jaque Silva/SOPA/Getty Images
Intel also didn’t focus on graphics processing units, which are needed to train AI.
The company has also faced production delays, including in 2020, when it announced obstacles with it 7 nanometer chip. Allowable delay Intel’s competitors, like Samsung and TSMC, to move the company forward.
As its valuation fell, the company implemented cost-cutting strategies.
Intel announced in August that it would cut 15,000 employees through voluntary separation agreements and layoffs. That month, the company sent staff a presentation with information about employee benefits that would be cut, including eliminating or reducing reimbursements for internet, phone and travel costs.
The company informed at least one of its Oregon offices in September that the drinks and fruit were no longer free.
“That’s small, isn’t it? How much is a piece of fruit a day?” a former Intel employee told BI.