Intel is allegedly preparing to undertake a significant reduction in its workforce, with plans to lay off over 20 percent of its employees. This announcement could come as early as this week. As of last year, the company had 108,900 employees, which means that tens of thousands of jobs may be at risk. According to a source cited by Bloomberg, the primary goal of this downsizing effort is to streamline the company’s management operations and refocus Intel on an engineering-driven culture.

In August of last year, Intel announced that it would cut over 15,000 jobs as part of a broader cost-cutting initiative. In fact, the company, which has been slow to adapt to the industry’s shift towards artificial intelligence, has been significantly reducing its headcount since 2022 amidst declining sales.

These latest reported layoffs would represent one of the first major restructuring measures undertaken by Intel since Lip-Bu Tan took over as CEO in March, following the sudden departure of Pat Gelsinger. Intel is set to release its quarterly earnings results on Thursday, and it is not uncommon for companies undergoing restructuring to announce layoffs around the time of their earnings reports.

Tan has also committed to selling off non-core assets as part of his efforts to turn the business around. Just last week, it was announced that Intel is selling off a majority stake in chipmaker Altera for $4.46 billion, a deal expected to close later this year.