UPDATE 1-Synta cuts 40 pct of jobs

* Says cuts 90 positions, cites negative cancer drug study

* Says restructuring to allow operations for 2 years

March 13 (Reuters) - Synta Pharmaceuticals Corp (SNTA.O) cut nearly 40 percent of its workforce, citing the recent suspension of its cancer drug trial.

Late-stage trial of the drug, elesclomol, was suspended last month after an independent data monitoring committee observed higher number of deaths and other safety concerns. [ID:nBNG478671]

The company and its partner GlaxoSmithKline (GSK.L) (GSK.N) are waiting for results of additional analysis to decide the "future direction" for the drug.

The company, which cut about 90 positions, said the restructuring would allow the company to operate for the next two years without additional equity financing.

Synta shares had closed at $1.97 Thursday on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Himani Sarkar)