Intel is reportedly planning to reduce its workforce by more than 21,000 employees, which accounts for approximately 20% of its staff, with an official announcement expected this week, as stated in a Bloomberg report.

This news precedes Intel’s Q1 earnings call, which will be led by Lip-Bu Tan, the company’s newly appointed CEO, who took over from long-time chief Pat Gelsinger last year.

The layoffs are intended to help Tan achieve his goal of “streamlining management and rebuilding an engineering-driven culture,” as reported by Bloomberg. At the end of last year, Intel had around 108,900 employees, following the announcement of 15,000 job cuts in August 2024.

Intel has been facing significant challenges for an extended period; its stock has declined by approximately 67% over the past five years. Since taking over as CEO in late 2024, Tan has been working to spin off non-core divisions of Intel into separate units. Earlier this month, Intel sold a 51% stake in its Altera semiconductor business to the private equity firm Silver Lake.

Intel has not immediately responded to a request for comment on the matter.