UPDATE 1-Canon to cut almost 1,200 Japan contract jobs -NHK

(Updates with Canon comment)

TOKYO, Dec 4 (Reuters) - Canon Inc. (7751.T) is planning to lay off almost 1,200 contract workers at two manufacturing subsidiaries in Japan as it grapples with slow camera sales, public broadcaster NHK said on Thursday.

In January, Canon will cut 1,097 jobs at Oita Canon Inc and another 80 jobs at its Oita Canon Materials Inc, which are located in southern Japan, the broadcaster said.

A Canon spokesman said the company has asked the outsourcing firm that deals with its subsidiaries to adjust production to meet falling demand. But he said Canon did not to know any specific numbers.

As sluggish economic conditions dampen consumer demand, Canon president Tsuneji Uchida warned last week that the global digital camera market may contract next year. [ID:nTKG003109]

Canon shares closed 3 percent lower at 2,565 yen, compared with a 1 percent decline for the Nikkei share average .N225. (Reporting by Mariko Katsumura; Editing by Sophie Hardach)