No more free tea, coffee for IBM staff

IT companies, which were doling out freebies to their employees are now in a role-reversal. These companies are now doing all that it takes to save that extra buck.

Software giant International Business Machines Corp has taken cost cutting to new levels by cutting down on tea and coffee for employees.

After announcing several layoffs, IBM now plans to stop free tea and coffee in a move that has surprised many. The company will install 'paid coffee vending machines' in its offices.

The company will also stop company-funded home Internet access for those working from home from May 1.

"Over the next several months the provision of some office amenities, including tea and coffee supplies, will be phased out. Where it makes sense, our intent is to replace this with user-paid vending machines at selected sites," an IBM email to the staff said, according to The Australian.

Though the company has not revealed how much it would save out of these cost cutting measures, it hopes these measures would help it build a salary bonus pool and invest more funds into research and development.

In March, IBM announced plans to lay off about 5,000 employees in the United States, with many of the jobs being transferred to India.

The company has been building its work force in India and other locations, while reducing the number of employees based in the US.

Foreign workers accounted for 71 per cent of Big Blue's nearly 400,000 employees at the start of the year, up from about 65 per cent in 2006, said The Wall Street Journal.