Lip-Bu Tan was appointed chief executive officer of Intel Corporation in March. He also serves on the company’s board of directors.

Intel Corporation

Intel is preparing to lay off more than 20% of its global workforce this week in a sweeping restructuring plan aimed at streamlining its management and reviving an engineering-focused culture, according to a Bloomberg report.

The cuts come under newly appointed chief executive Lip-Bu Tan, who took the helm of the company last month and is looking to streamline operations following years of declining sales and losing ground against rivals in artificial intelligence. 

The layoffs would mark Intel’s largest workforce reduction to date, and follow a round of 15,000 job cuts announced in August. Intel reported having 108,900 employees at the end of last year, down from 124,800 the year before.

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“These decisions have challenged me to my core,” said former CEO Pat Gelsinger last year, describing the restructuring process as among the most difficult moments of his tenure. 

Intel is preparing to lay off more than 20% of its global workforce this week in a sweeping restructuring plan, according to a Bloomberg report.

Intel Corporation

A spokesperson for Intel did not immediately respond to a request for comment. The company is expected to detail its plans further during its first-quarter earnings report Thursday.

Tan, a veteran of Cadence Design Systems, vowed to divest non-core units and invest in more competitive products. Last week Intel sold a 51% stake in its programmable chip unit, Altera, to Silver Lake Management.

Intel shares rose as much as 6.5% Wednesday on news of the restructuring.

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Once a dominant force in chipmaking, Intel has struggled to keep pace with Nvidia amid the AI boom. 

“It won’t happen overnight,” Tan said at the Intel Vision conference last month. “But I know we can get there.”