Agilent Technologies, the world’s biggest testing equipment maker, has announced that it is instituting a restructuring that will see it shed its semiconductor unit, cut 1,300 jobs, and cut costs by $450 million.

Next year, the company also said, it will spin off its system-on-chip and memory test business. Agilent said that these moves would let it focus on its testing and measurement business. Two private equity firms, Kohlberg Kravis Roberts and Silver Lake Partners, will purchase the company’s chip business for around $2.66 billion, and Netherlands company Philips will pay around $945 million for Agilent’s 47 percent share of LED maker Lumileds Lighting.

Analysts say that Agilent’s business troubles since it was spun off from Hewlett Packard in 2000 has to do with the cyclical nature of its cash-intensive semiconductor business. Despite these troubles, however, Agilent posted third-quarter earnings that were better than analysts had expected due to cost-cutting measures that compensated for a 10 percent decline in sales.

The news of Agilent’s restructuring sent its shares up by around 12 percent by mid-day on Monday in New York, rising $3.15 to $29.56.