Intel resumes FREE coffee, tea for staffers to boost morale, costs $100M a year


TL;DR: Intel is reinstating free coffee and tea for employees to boost morale despite ongoing cost challenges, but free fruit remains unavailable. The company has faced significant financial difficulties, including a $16.6 billion loss in Q3 2024, leading to layoffs and cost-cutting measures.

Intel sent out a memo to its employees this week, starting with reminding its staffers that “although Intel still faces cost challenges” that it will be finding coins in its lounges to restart its free coffee and tea for staffers to boost morale in these dark times for Team Blue.

This'll fix it: Intel resumes FREE coffee, tea for staffers to boost morale, costs $100M a year 45

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The Oregonian reports that Intel explained on its internal messaging forum dubbed Circuit: “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“.

Intel has of course declined to comment, and while the $100 million-per-year free coffee and tea train is back on again — remember folks, Intel is going through cost challenges — the free fruit isn’t on offer after it was eliminated last summer.

Employees have told The Oregonian privately that “morale has been devastated by Intel’s poor financial performance and by cutbacks aimed at returning the business to profitability“.

Intel permanently grounded its air shuttle service that would fly workers between its offices in Oregon and other western states, sliced and diced 15,000+ jobs just a couple of months ago, laid off 1300 workers in Oregon just last month and 1000+ at its sites in California, Arizona, and Texas.

At a recent meeting, Intel employees asked about restoring the coffee program but were told it wasn’t coming back anytime soon. Intel’s Chief People Officer, Christy Pambianchi, told Intel employees that the company had been spending $100 million per year on free and discounted food and drinks, but that it couldn’t afford to keep doing that.

According to an account of the meeting reviewed by The Oregonian, Pambianchi said: “Until we get into a better financial health position, we need to be suspending those“.



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