Intel is set to undergo a significant restructuring effort, with plans to cut over 21,000 jobs, or roughly 20% of its workforce, according to a Bloomberg report. The news comes ahead of the company's Q1 earnings call, which will be helmed by recently appointed CEO Lip-Bu Tan.

The layoffs are part of Tan's efforts to "streamline management and rebuild an engineering-driven culture" at Intel, which has been struggling in recent years. The company's stock has dipped around 67% over the past five years, and Tan has been working to revamp the company's operations since taking over as CEO last year.

This is not the first round of layoffs for Intel. In August 2024, the company announced 15,000 job cuts, bringing its total workforce to around 108,900 employees at the end of last year. The latest round of layoffs will further reduce the company's headcount, as Tan seeks to refocus Intel on its core businesses.

Tan has been moving to spin off non-core divisions of Intel into separate units. Earlier this month, the company sold 51% of its Altera semiconductor business to private equity firm Silver Lake. The move is seen as part of Tan's efforts to simplify Intel's operations and focus on its core chipmaking business.

The layoffs are likely to have significant implications for Intel's employees, as well as the broader tech industry. The company's struggles have been well-documented, and the latest round of layoffs will only add to the uncertainty surrounding its future. However, Tan's efforts to refocus the company on its core businesses may ultimately pay off, and help Intel regain its footing in the competitive tech landscape.

Intel did not immediately respond to a request for comment on the layoffs. The company's Q1 earnings call is expected to provide further insight into its restructuring efforts and future plans.

The news is likely to send shockwaves through the tech industry, as Intel is one of the largest and most influential players in the sector. The company's struggles have been a major concern for investors and analysts alike, and the latest round of layoffs will only add to the uncertainty surrounding its future. However, with Tan at the helm, Intel may finally be taking the necessary steps to turn its fortunes around and regain its position as a leader in the tech industry.