Intel (INTC, Financials) is preparing to lay off more than 21,000 employees—approximately 20% of its global workforce—as part of a broad restructuring initiative under its new chief executive officer, Lip-Bu Tan, according to Bloomberg.

The job reductions are expected to be announced this week ahead of Intel's first-quarter earnings call. The Santa Clara, California-based company had around 108,900 employees at the end of 2024, following a separate round of 15,000 job cuts in August of that year.

Tan, who replaced former CEO Pat Gelsinger in late 2024, is reportedly seeking to streamline management layers and reestablish Intel as an engineering-led organization. Since his appointment, the company has labeled some of its business units as noncore and sold a 51% stake in its Altera programmable chip division to private equity firm Silver Lake earlier this month.

Intel's shares have lost about 67% of their value over the past five years, underscoring ongoing competitive and operational challenges. Analysts say the latest move reflects Tan's strategy to focus on Intel's core semiconductor business and scale back peripheral ventures.

The layoffs are among the largest seen in the technology sector in 2025 and add to an industry-wide trend of cost-cutting, particularly in the hardware and semiconductor segments. Intel has not responded publicly to the Bloomberg report.

The upcoming earnings call, Tan's first as CEO, is expected to offer further details on the restructuring and the company's outlook as it seeks to close the performance gap with key competitors such as Advanced Micro Devices (AMD, Financials) and Nvidia (NVDA, Financials).