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An anonymous reader quotes a report from Oregon Live: Intel told employees this week that it will bring back free coffee and tea at its work sites, one of many benefits the chipmaker eliminated last summer as it sought to slash $10 billion from its annual budget. "Although Intel still faces cost challenges, we understand that small comforts play a significant role in our daily routines," Intel wrote on its internal messaging forum, called Circuit. "We know this is a small step, but we hope it is a meaningful one in supporting our workplace culture." Intel declined comment. The company did not resume offering free fruit, another perk eliminated last summer. Employees say privately that morale has been devastated by Intel's poor financial performance and by cutbacks aimed at returning the business to profitability. [...] Christy Pambianchi, Intel's chief people officer, told employees that Intel had been spending $100 million annually on free and discounted food and beverages and couldn't afford to keep doing that. "Until we get into a better financial health position, we need to be suspending those," Pambianchi said, according to an account of the meeting reviewed by The Oregonian/OregonLive. By Wednesday the company had reversed itself, committing to keep its employees caffeinated. In August, Intel announced plans to lay off over 16,000 employees, representing more than 15% of its global workforce. Its stock dropped to a 50-year low following the announcement. Starting November 8, Nvidia will replace the chipmaker on the Dow Jones Industrial Average.

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