UPDATE 1-Accuray to cut 5 pct jobs to reduce cost

Wed Nov 16, 2011 7:24am EST

* To cut 51 jobs; already reduced 29 positions

* To reduce the rest 22 over fiscal 2012

* Sees $1.7 mln charge in Q2; rest in H2 fiscal 2012

Nov 16 (Reuters) - Medical device maker Accuray Inc said it would cut about 5 percent of its workforce, or 51 jobs, to reduce cost following its acquisition of smaller rival TomoTherapy earlier this year.

Accuray, which makes devices to treat cancer, said it already cut 29 positions effective Nov. 15, and will eliminate remaining 22 jobs in phases during the rest of fiscal 2012.

The company will record a charge of about $1.7 million related to the Nov. 15 job cut, in the second quarter. It would record the rest of the charges in the latter half of the fiscal year.

In March, the company acquired its smaller rival TomoTherapy for about $277 million to expand its operations in the radiation oncology field, and it has laid off about 135 positions since then.

Shares of Accuray, valued at $284 million, closed at $4.03 on Nasdaq on Tuesday.