UPDATE 1-XOMA to cut 34 pct jobs, sees charge in 2012

* Cuts 84 jobs

* Sees $6 mln charge in 2012

* Names John Varian as CEO

Jan 5 (Reuters) - Xoma Ltd said it plans to cut 84 jobs, or 34 percent of its workforce, to focus on the development of its lead anti-inflammatory drug XOMA 052.

The biotechnology company expects to record a charge of about $6 million during 2012, of which $3.9 million will result in cash charges.

In March, XOMA 052 failed to meet the main goal of lowering blood glucose levels in diabetes patients in a mid-stage study.

The Berkeley, California-based company expects to save about $14 million this year from the job cuts.

Xoma said its decision to use contract manufacturing organization for late-stage trials and commercial production allowed it to reduce the workforce.

Separately, the company named John Varian as chief executive. Varian has been serving as the interim chief executive since August 31, after Steve Engle resigned.

Xoma shares were up 4 percent at $1.29 on Thursday on the Nasdaq.