Intel brings back free coffee, considering return of company cars
Following employee discontent, Intel Israel partially reverses benefits cuts as it seeks to boost morale amid ongoing layoffs.
Intel Israel, amid a sweeping global cost-cutting initiative, has decided to restore complimentary coffee and tea stations in response to employee concerns over the recent removal of this perk. The move marks a partial reversal of recent cutbacks, which also included the suspension of company cars for mid- to senior-level employees. Intel Israel has faced mounting employee discontent as layoffs, benefit reductions, and budget cuts have reshaped the working environment at one of the country's most significant tech employers.
"While we still face significant cost challenges, we recognize the impact that small comforts have on our daily routines. We are reintroducing the complimentary coffee and tea service to enhance our workplace culture," Intel Israel confirmed in a statement.
The decision to bring back the coffee and tea stations comes after significant backlash. Last month, employees arrived at Intel Israel offices to find the familiar kitchenettes, usually stocked with coffee, tea, and fresh fruit, empty for the first time. The company had announced that it would end its complimentary hot drinks and fruit service as part of a broader cost-cutting strategy that included staff reductions and the suspension of company cars for eligible employees. A simple sign in the kitchenettes informed employees of the abrupt change: “Free coffee, tea, and fruit service will end on 27.10.2024.”
The cutbacks, though seemingly small, were met with disappointment and anger among employees. “This may lead to further employee departures,” one Intel Israel employee told Calcalist. “This comes on top of losing company vehicles and cuts to stock options. A ‘small’ thing like coffee really affects employees—it’s just embarrassing.”
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In August, Intel announced a global workforce reduction plan that would eliminate 15,000 jobs, or about 15% of its workforce, as the company navigates one of its most challenging periods in decades. Hundreds of positions at Intel Israel have been cut as part of this process. Employees who remain have seen their benefits reduced, and morale has been dampened by the ongoing austerity measures. The recent restoration of coffee and tea is one of Intel's first gestures toward addressing staff morale as they continue to implement sweeping changes.
Employee frustration has also centered around the suspension of company cars, previously provided to employees at level 7 or higher. Losing this benefit effectively reduced salaries by about 10% for some staff members. Employees questioned the legality of this change in a meeting with Intel Israel’s co-CEO Karin Eibschitz-Segal, though the response was ambiguous. “The response was vague: ‘We reviewed all aspects, and this is the decision,’” one employee said. “When they cut salaries by 5% before, every employee had to sign off. Now they’re making larger cuts without consent, even though it’s likely in the employment terms.”
