Oct 10 (Reuters) - Novo Nordisk has cut its

cell therapy division, where it was trying to find a cure for

type 1 diabetes, Bloomberg News reported on Friday.

It also cited Danish newspaper Borsen, which reported that

the company would lay off nearly all of the unit's 250

employees.

Novo was testing its cell therapy to generate

insulin-producing beta cells for patients with type 1 diabetes

in a preclinical study, along with another cell therapy

candidate for Parkinson's disease in early-stage trials.

The latest move is part of CEO Mike Doustdar's plan to

reduce headcount by 11% and reallocate resources to

high-priority research areas, the Bloomberg report said.

Novo did not immediately respond to a Reuters request

for comment.

The Danish drugmaker is seeking partners to continue

developing its innovations, according to the report.

It has laid off dozens of employees at the largest U.S.

manufacturing site for its blockbuster obesity and diabetes

drugs, Reuters reported earlier this week, citing a review of

LinkedIn posts.

Novo said on Thursday it would buy U.S.-based Akero

Therapeutics ( AKRO ) for up to $5.2 billion to gain access to a

promising liver disease drug candidate in the first major deal

by the Danish drugmaker's new CEO to spur growth.

Earlier this month, it called off its $598 million

collaboration with Japanese biotech Heartseed to develop cell

therapy for advanced heart failure.