Intel has returned free coffee and tea to offices, but it still can’t afford fruit

Intel is bringing back free coffee and tea to its offices, hoping to boost employee morale after a difficult year during which the company was forced to reconsider a number of benefits and significantly cut costs. This decision should be part of a new corporate policy to improve working conditions, however, free fruit will still remain outside the benefits program.

Image source: Intel

Intel representatives did not comment to Business Insider regarding the reasons why the fruit was not returned, but this decision is most likely dictated by tough austerity measures introduced to stabilize the company’s financial position. Intel has remained one of the leaders in the high-tech industry for many years, but in recent years the company has made a number of strategic mistakes, due to which its position in the market has begun to weaken. In the 1990s, Intel played a significant role in the development of the personal computer (PC) market, but in the early 2000s the company was unable to adapt to the rapid growth of the mobile segment, which allowed Apple with its iPhone to strengthen its position. This strategic blunder was the first warning sign that showed the need to reconsider Intel’s strategy.

A particularly significant strategic mistake for Intel was its refusal to sign a contract with Apple to produce processors for the iPhone. Former CEO Paul Otellini, in an interview with The Atlantic in 2013, expressed regret that negotiations with Apple were unsuccessful. Intel considered production volumes too small to justify the project’s costs, but it later became clear that this decision limited the company in one of the most promising segments of the mobile market.

Another missed opportunity for Intel was the refusal to cooperate with OpenAI, when in 2017-2018 the startup was looking for partners to create its own infrastructure and reduce dependence on Nvidia, which by that time had become a serious competitor to Intel. As Reuters reported, the deal fell apart due to the position of CEO Bob Swan, who did not see commercial prospects in generative AI models. The decision once again left Intel unable to enter the rapidly growing AI market, where rivals such as Nvidia were gaining ground unopposed.

The company also missed an opportunity to gain a stronger position in the market for graphics processing units (GPUs), which today play a critical role in training modern AI models. While Nvidia has rapidly increased its position by providing powerful solutions for machine learning (ML) needs, Intel has essentially remained on the sidelines. This decision seriously affected its competitiveness in the increasingly competitive AI field, where the need for powerful GPUs continues to grow steadily.

Additionally, the company faced challenges in developing its 7nm processors in 2020, allowing its main competitors such as Samsung and TSMC to leapfrog Intel. The delay undermined production plans and significantly weakened the company’s position, opening opportunities for competitors who actively filled the gap with their own products.

Against the backdrop of a decline in market value, Intel was forced to switch to strict cost-saving measures. In August, the company announced it would cut up to 15,000 employees, offering voluntary separation and staff optimization programs. At the same time, a message was sent to employees informing them that a number of benefits, such as reimbursement for internet, travel and telephone expenses, were being cancelled. These measures caused mixed reactions among employees, as many of them felt the changes had a significant impact on their daily work environment.

The return of free coffee and tea can be seen as a symbolic step by Intel aimed at maintaining employee morale and strengthening corporate culture. However, it is clear that this step will not be enough to restore its market position: the company must make efforts to adapt to new technological challenges, including the rapid development of AI and mobile technologies. Strategic investments and thoughtful planning will be key to Intel’s success in the face of intense competition and rapid technological advancement.