UPDATE 1-InterDigital to cut 26 pct of jobs

* To cease further development of its SlimChip product

* Reduction in workforce by 100 employees

* Sees charges of about $45 mln in Q1

* Shares up as much as 20 percent

March 30 (Reuters) - Wireless technology firm InterDigital Inc (IDCC.O) said it would cut 100 jobs, or about 26 percent of its workforce, as part of a plan to stop further development of its SlimChip mobile broadband processors, sending its shares up as much as 20 percent.

The company said it will focus on licensing out the technology instead and expects pre-tax savings of about $33 million.

The company expects to take a charge of about $45 million in first quarter, $10 million of which will be in cash associated with severance and other obligations.

According to Reuters data, the company has about 379 employees.

With the restructuring, the company expects its development expense for second quarter to be in the range of $14 million to $15 million, compared with the $22.7 million a year ago.

Shares of the King of Prussia, Pennsylvania-based company were up $4.32 at $26.41 in afternoon trade on Nasdaq. They touched a high of $26.53 earlier in the day. (Reporting by Deepti Govind in Bangalore; Editing by Anil D'Silva)