Intel's new CEO signals major organizational restructuring including potential 20% workforce reduction.

Intel is reportedly preparing to lay off more than 20% of its workforce, a dramatic move aimed at flattening its leadership and cutting operational fat. The layoffs, expected to be announced this week, would mark the first sweeping restructuring under new CEO Lip-Bu Tan, who took the helm last month with a mandate to reset the company's strategic course.

The job cuts are part of Intel's broader $10 billion cost-reduction plan for 2024 and follow a prior 15% workforce reduction last August. If confirmed, this latest round could impact over 21,000 jobs, based on the company's most recent headcount of 108,900 employees.

Tan is reportedly targeting middle management in particular, calling it slow-moving and inefficient. In a recent town hall, he told employees that "tough decisions" were necessary to rebuild Intel's engineering-first culture and refocus efforts on AI and chip manufacturing.

Intel has been under increasing pressure as rivals like Nvidia surge ahead in the AI chip race. The company has struggled with declining margins in its core PC and data center businesses and faces mounting costs tied to its shift toward advanced AI chips. Tan's leadership shake-up has already begun, with key chip units undergoing reorganization as part of the broader restructuring effort.