Bloomberg dropped a bombshell yesterday when it reported microprocessor manufacturing giant Intel (NASDAQ:INTC) is planning company-wide job cuts. Mostly likely, slow PC demand is to blame for Intel’s financial pressures and the resultant job reductions. Moreover, the timing of the official job-cuts announcement will be key. If it takes place on the same day as Intel’s Oct. 27 third-quarter earnings release, this could have a major impact on INTC stock.

When a company reduces its headcount, is this a good thing or a bad thing? It’s bad for the laid-off workers, of course, but Wall Street sometimes sees things differently. Investors might view Intel’s next round of job eliminations as a way for the company to reduce its expenditures.

With the PC market in dire straits, Intel will have to get creative — or in this case, destructive — to deal with the financial fallout. As of July, Intel had 113,700 employees, but this figure is likely to diminish in the near future.

Or at least, that’s what Bloomberg seems to be suggesting. The news outlet reported Intel will implement a headcount reduction “likely numbering in the thousands.”

What’s Happening with INTC Stock?

So, again, traders must decide whether all of this is good or bad news. Apparently they’re still figuring it all out, as INTC stock was green premarket, then red in early-session trading; by 10 a.m. Eastern, it was basically unchanged.

Perhaps today isn’t the most important day in this story, though. Bloomberg implied Intel may officially announce the job cuts on Oct. 27. That’s a day to mark on your calendar, as it’s when Intel will disclose its third-quarter 2022 earnings results.

Some investors might have seen this coming. After all, CEO Pat Gelsinger previously warned, “We are also lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year.”

So, here we are, and those “additional actions” may be just around the corner. Until then, the market will have to decide one way or another what to do with INTC stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.