Investing.com-- Intel Corporation (NASDAQ: INTC ) plans to announce job cuts covering more than 20% of its staff this week as it grapples with a growing cash crunch and weak market conditions, Bloomberg reported on Tuesday.

The move is aimed at reducing bureaucracy in the company, and is also intended to help streamline management and build a more engineering-focused culture, the Bloomberg report said, citing a person with knowledge of the matter.

Intel employed about 109,000 people at the end of 2024.

The upcoming cuts will be Intel’s first major restructuring under new CEO Lip-Bu Tan, who was appointed as Pat Gelsinger’s replacement last month.

Tan outlined plans to turn around the struggling chipmaker, after a restructuring under Gelsinger, over the last three years, failed to change Intel’s prospects.

The company is struggling with three straight quarters of falling revenue and shrinking profitability, and is expected to clock a fourth straight quarter of this trend on Thursday.

But Intel’s March quarter earnings are also expected to provide more insight into Tan’s turnaround plans.

Once a global leader in chipmaking, Intel largely fell behind rivals such as Nvidia (NASDAQ: NVDA ) in recent years, especially as the company failed to capitalize on the popularity of graphical processing units in the past decade.

The company’s foundry division also fell behind rivals such as TSMC, which developed far more advanced chipmaking and packaging technologies.