UPDATE 1-NeuroMetrix to cut jobs by 27 pct

Tue Jan 4, 2011 5:42pm EST

* Says to take related charge of about $2.2 mln

* Shares up 5 pct in extended trading

Jan 4 (Reuters) - Medical device maker NeuroMetrix Inc (NURO.O) said it will cut its workforce by 27 percent, the second time in less than a year, and take a related charge of about $2.2 million as part of a restructuring process.

The company, which has over 100 employees currently, will disband its salesforce and acquire all new accounts through third-party distributions as it shifts its focus to diabetic neuropathy from neurodiagnostic business.

During the second quarter, the company had reduced 25 percent of its workforce.

Waltham, Massachusetts-based NuroMetrix ended 2010 with cash balances of $17 million.

The company's shares, which closed at 59 cents on Tuesday on Nasdaq, were up 5 percent at 62 cents in extended trading. The stock has gained about 11 percent since the company reported its quarterly results in November. (Reporting by Rajarshi Basu in Bangalore; Editing by Maju Samuel)