Updated from 1:29 p.m. EDT

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

Microsoft's

(MSFT) - Get Report

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)

. Whether they believe the rumors or not, investors drove Yahoo!'s share price up 4% to $14.74.

IBM

(IBM) - Get Report

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) - Get Report

and

Apple

(AAPL) - Get Report

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) - Get Report

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) - Get Report

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.