Intel announced the return of free coffee and tea to its workplaces, restoring a benefit that was cut last summer as part of the company’s efforts to cut its annual budget by $10 billion, according to a report in Oregon. The decision marks a small but significant gesture aimed at improving employee morale following cost-cutting measures.

In a message to employees through its internal platform, Circuit, Intel acknowledged the ongoing financial challenges, but emphasized the importance of these small comforts in supporting workplace culture.

“Although Intel still faces cost challenges, we understand that small conveniences play an important role in our daily routines. We know this is a small step, but we hope it’s a significant one in supporting our workplace culture,” the paper said, citing Intel. he wrote on his internal Circuit messaging forum.

The reintroduction of free drinks follows a series of tough cost-cutting measures announced by Intel.

Previous rounds of layoffs at Intel

In October, it said more than 2,000 jobs would be cut from the company in the United States. These job cuts are part of the 15,000 layoffs that were announced by Intel CEO Pat Gelsinger in early August. In August, the tech company said 1,500 employees would be cut either through voluntary severance agreements or DISMISSAL. Along with job cutsthe company also cut several employee benefits, including reimbursements for internet, phone and travel expenses.

While the company still faces significant cost challenges, this move to bring back free coffee and tea reflects an effort to foster a more positive atmosphere for remaining employees.

Intel CEO unveils new steps

Unveiling new steps to cut costs and strengthen its chipmaking division, CEO Pat Gelsinger announced in September that Intel would separate its chipmaking and design operations.

“Increasing the separation between the two operations will allow the manufacturing arm to raise funding independently, alleviate customer concerns about its independence and align it more culturally with a contract chipmaker,” Gelsinger said.

The slew of new measures, he added, is part of an exercise to deal with one of the most significant crises in the company’s five-decade history.