* Q1 loss/shr 6 cents vs est loss/shr 29 cents

* Q1 revenue $20.9 mln vs est $15.7 mln

* Says achieved a planned 10 pct staffing reduction

* Shares up 17 pct

May 11 (Reuters) - Progenics Pharmaceuticals Inc (PGNX.O: Quote, Profile, Research) posted a quarterly loss that was significantly narrower than market estimates, helped by a strong rise in revenue and lower research and development expenses, and said it cut 10 percent of workforce to streamline operations.

The drugmaker also eliminated salary increases for senior management and reduced bonuses for all employees. It cut expenditures on contractors and consultants and lowered capital expenditures.

"In this challenging economic environment, we plan to supplement the development of key programs using outside funding wherever attractive," Chief Executive Paul Maddon said in a statement.

For the latest first quarter, net loss was $1.8 million, or 6 cents a share, compared with a net loss of $15.5 million, or 52 cents a share, in the year-ago period.

Revenue for the quarter rose 42 percent mainly on the recognition a $15.0 million payment received from Progenics' Japanese collaborator Ono Pharmaceutical Co Ltd (4528.T: Quote, Profile, Research).