Drug maker Cilag in the canton of Schaffhausen says it will shed 120 jobs.

Cilag has about 1,100 employees but it says it plans to drop a large part of its active ingredient production by 2015.

The pharmaceutical company said increasing price pressure has driven it to look at products with higher margins and growth potential.

Cilag is a subsidiary of U.S. giant Johnson & Johnson and is a major employer in Schaffhausen.

The company said it hoped most of the job cuts would come through natural fluctuations or temporary jobs not being renewed.

Labor union Unia called the decision unnecessary and incomprehensible in light of company profit margins.