- Intel is bringing back free drinks for 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 chip maker said free office drinks would return to workplaces in an internal announcement in an effort to boost morale, the Oregonian reported.
“While Intel still faces cost challenges, we understand that small conveniences play an important role in our daily lives,” reads the announcement, seen by the Oregonian. “We know this is a small step, but we hope it’s a significant one in supporting our workplace culture.”
However, the free fruit that employees are used to will not be refilled, the store said.
Intel representatives did not respond to a request for comment from Business Insider.
Intel cut employee pay and bonuses after a string of setbacks
Intel has remained a major player in the technology industry for decades, but a few missteps they kicked him out of the course.
Intel played a significant role in the PC boom of the 1990s, focusing mainly on PCs. However, it did not benefit from the growth of 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 missing out on a deal with Apple to design and manufacture iPhone chips. The two companies were unable to reach an agreement because Intel felt that the volume would not justify the cost.
Intel missed another opportunity when it declined in 2017 and 2018 buy a share in OpenAIwhich has emerged as a leader in the race for artificial intelligence.
OpenAI wanted Intel’s investment so it could reduce its reliance on chips made by Nvidia, the new chip leader and Intel’s main rival, 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 make it to market anytime soon.
Intel told employees it would stop providing free drinks and fruit at workplaces. Jaque Silva/SOPA/Getty Images
Intel also isn’t concentrating on the GPUs needed to train AI.
The company also faced production delays, including in 2020 when it announced failures with their own 7-nanometer chips. Allowed delay Intel’s competitors, such as Samsung and TSMC, to get ahead of the company.
As its valuation fell, the company implemented cost-cutting strategies.
Intel announced in August that it would cut 15,000 jobs voluntary separation and redundancy agreements. This month, the company sent a slideshow to employees detailing employee benefits that will be cut, including eliminating or reducing reimbursements for internet, phone and commuting expenses.
The company informed at least one of its Oregon offices in September that drinks and fruit were no longer free.
“It’s petty, isn’t it? How much is a fruit a day worth?” a former Intel employee told BI.