Intel deprives employees of free coffee and fruit

Employees at Intel’s Israeli offices recently discovered a lack of familiar amenities: once well-stocked kitchenettes offering free coffee, tea and fruit were empty. Intel previously canceled company cars and cut stock options. All these measures were taken as part of large-scale cost cutting. The plan also calls for layoffs of 15,000 employees, more than 15% of the total workforce.

Intel is facing one of the most difficult crises in its history. The first reductions in the server and client areas of the business began in May 2023. In April 2024, the company announced cuts in the sales and marketing department. Now the optimization process has led to a significant reduction in staff at Intel Israel.

With layoffs set to begin this week, managers are already setting up meetings with furloughed employees, who must decide whether to accept voluntary retirement packages or go to a formal hearing. Intel promises furloughed employees access to counseling and career services, including job search assistance, interview preparation, resume workshops and even mental health support. Hundreds of people are expected to lose their jobs in the near future.

Along with the staff cuts, Intel cut bonuses for remaining employees. Thus, the company has completely canceled free hot drinks and fruits on all its campuses. This seemingly minor change caused significant frustration among staff.

Another morale-destroying measure is the abolition of company cars. Intel Israel employees at level 7 and above were previously entitled to either a company car or an allowance of NIS 3,650. Eliminating this benefit effectively reduces many employees’ salaries by about 10%.

According to one employee, these measures could lead to more layoffs beyond the planned 15%: “If the goal was to retain 85% of the workforce, the result might be different. The problem is that the best employees—those with the most opportunities—are the first to leave. It’s a risky approach.”

Image source: Pixabay

Intel commented: “As part of the extensive cost reduction plan we announced in August, we are forced to make difficult but necessary decisions to reduce our workforce. These are the most difficult decisions we make, and we treat our employees with sensitivity and respect. These changes support our strategy to become a leaner, simpler and more flexible company to position Intel for long-term sustainable growth.”