American chip manufacturer Intel is reportedly planning to lay off more than a fifth of its workforce.
This was reported by financial news agency Bloomberg, citing an anonymous source familiar with the matter.
The restructuring is expected to be announced this week, possibly at the publication of the quarterly results on Thursday.
At the end of last year, Intel employed around 109,000 people. This could drop by around 20,000 now.
This is a first major move by the new CEO Lip-Bu Tan, who took over from Pat Gelsinger in March. The aim of the restructuring is to streamline management and reduce bureaucracy at Intel, according to the source.
The American chip manufacturer is struggling in the competition for AI chips. Sales figures have been declining for three years. Last year, 15,000 jobs were also cut at Intel.
