IBM to Cut 1,500 Jobs, Sets Charge - TheStreet

Updated from 11:29 a.m. EDT

IBM

(IBM) - Get Report

is cutting about 1,500 jobs in its microelectronics unit, or 7.5% of the division's workforce, as part of bid to deal with the decline in the semiconductor sector.

A

Reuters

report indicated that IBM is also considering divesting certain technologies, which would go along with the company's decision to sell the majority of its hard disk drive assets to

Hitachi

(HIT)

for $2.05 billion.

As a result of the job cuts and the sale of the hard disk business, IBM will record pretax charges of $2 billion to $2.5 billion, primarily in the second quarter.

In May,

reports began circulating that IBM would lay off up to 8,000 workers, or 2.5% of its workforce, to deal with the continuing technology slump.

Shares of IBM rose $1.20, or 1.5%, to $79.31 on the day. The stock is hovering just above its 52-week low of $75.92. Since the beginning of the year, IBM has lost 36%.