Intel scraps coffee stations and phone benefits as financial pressures mount
Intel scraps coffee stations and phone benefits as financial pressures mount
Cost-cutting measures continue at Intel with reductions in non-essential benefits for employees.
Intel continues to surprise its employees with cost-cutting measures. After canceling the contracts for most of its leased vehicles, Calcalist has learned that the company is implementing two additional benefit reductions. The first is the closure of the luxurious coffee stations, replacing them with simpler alternatives. The second involves ending corporate funding for mobile phone plans for employees who are not officially entitled to this benefit. While these cuts may seem minor at first glance, they reflect the significant financial distress Intel is facing both in Israel and globally. Intel is slashing any non-essential activities that do not provide a quick return on investment (ROI). The recent closure of Intel Ignite, the company’s highly regarded technological accelerator, is another example, as it was not generating immediate revenue.
The new policy will not affect manufacturing workers, as the use of phones is considered essential to their business activities. Intel will continue to finance devices and services for them. Intel will also continue to fund devices in certain cases for marketing personnel in direct contact with customers, IT staff providing critical support, and legal department employees involved in business-critical tasks.
Intel currently employs approximately 11,700 workers in Israel, with 7,800 in development roles and 3,900 in manufacturing. The company recently announced plans to lay off 15% of its workforce and slash $10 billion in costs. Globally, there have also been widespread reports of employees expressing dissatisfaction over the discontinuation of free food and beverages.
Intel said in response: "Intel regularly evaluates its global operations to ensure efficiency and responsible resource management. While we do not comment on specific operational details, Intel remains fully committed to Israel as one of our primary production and R&D sites. Our decisions, including adjustments to internal processes and benefits, are driven by market conditions, business dynamics, and our long-term growth strategy."
