Intel is planning to cut over 20% of its workforce, amounting to over 21,000 employees, this week as part of a drastic restructuring effort under new CEO Lip-Bu Tan, according to a recent Bloomberg report citing sources familiar with the matter.

Intel, the US-based chipmaking giant, has named industry veteran Lip-Bu Tan as its new CEO, effective March 18. The appointment comes as Intel seeks to recover from one of its most challenging periods, marked by declining market share, falling stock prices, and intense competition in the semiconductor industry.

Intel CEO Patrick Gelsinger has stepped down after less than four years, as the company struggles to compete with industry leaders like Nvidia and TSMC. The decision followed a board meeting where directors expressed concerns about the slow progress of Gelsinger’s turnaround plan.