Tech Winners and Losers: Microsoft Cuts

Updated from 1:29 p.m. EDT

Big-name tech stocks were mixed in early afternoon Tuesday.

Microsoft's(MSFT Quote) stock price was falling following an announcement that the company was moving forward with plans to cut thousands of workers in the company's first-ever layoffs. Microsoft cut 1,400 jobs when it announced the staff reductions in January. According to reports, after the cuts announced Tuesday nearly 5,000 employees will have been fired. Microsoft shares fell 2% to $19.79.

In other Microsoft news, rumors are swirling -- again -- that the software shop is moving closer to a search ad deal with Yahoo!(YHOO Quote). Whether they believe the rumors or not, investors drove Yahoo!'s share price up 4% to $14.74.

IBM(IBM Quote) announced it would buy privately held software provider Exeros for an undisclosed amount. The company will be folded into IBM's information management software portfolio, according to The Associated Press. IBM shares fell 0.3% to $105.85.

Meanwhile, Google(GOOG Quote) and Apple(AAPL Quote) are reportedly being investigated by the Federal Trade Commission to determine any violation of antitrust laws. Google shares rose 0.3% to $402.99, and Apple shares rose 0.5% to $132.71.

Elsewhere in the sector:

Garmin(GRMN Quote) shares fell 1.3% to $25.66 a day ahead of the company's quarterly earnings report. Analysts are expecting earnings per share of 42 cents on revenue of $531.6 million.

And in the semiconductor space, Nvidia(NVDA Quote) fell 4.1% to $11.80 after an analyst at Wedbush Morgan downgraded the stock from Buy to Hold. Wall Street expects the company to post a loss of 11 cents per share on $502.6 million in revenue when it reports quarterly earnings Thursday.