Intel is planning a major workforce reduction, with job cuts likely numbering in the thousands, in the face of a downturn in the PC market, Bloomberg reported Tuesday.

The layoffs will be announced as early as this month, coinciding with Intel’s third-quarter earnings report on Oct. 27, the news agency reported, citing unidentified sources. Some divisions, such as the chipmaker’s sales and marketing groups, could see staff reductions of about 20%, the report said.

After the pandemic spurred demand for devices while everyone was forced to stay home, consumer spending in the second half of this year has been hurt by the effects of high inflation, rising interest rates and geopolitical tension.

Intel’s profit and revenue plunged in the second quarter, with revenue from its PC business dropping 25% to $7.3 billion. Global PC shipments likely declined 15% in the third quarter year over year, the International Data Corporation predicted Monday.

The reported layoffs come as Intel tries to claw its way back to the cutting edge of chip manufacturing and lead the US semiconductor industry to reclaim clone lost to Asia.

Intel’s last major round of layoffs came in 2016, when it announced it would cut 12,000 jobs, or 11% of its global workforce. The chipmaker had 113,700 employees as of July.

An Intel spokesperson declined to comment on the report.