Olympus: It’s Always Darkest Before The Dawn

The Olympus debacle is a tragic case where things must turn for the worst before it can become better. Olympus has announced that it will slash off 2,700 jobs and it will give Michael Woodford – the whistler blower that revealed the Japanese firm’s accounting fraud, a £10m settlement for his claim that he was unfairly dismissed.

The Japanese company said it will cut 7 percent of its global workforce by March 2014, a way for the company to aggressively cut costs.

Olympus revealed it will cut around 7% of its global workforce by 31 March 2014 as part of an ‘aggressive’ cost-cutting strategy. This will involve ‘elimination and consolidation’ of 30 production sites (around 40%), and the firm plans to ‘restructure’ its imaging manufacturing functions.

Olympus is relying on its mirrorless technology to revive the company and it would be putting all of its resources on mirrorless cameras.

In a report the company stated that ‘medium-term vision’ statement, released today, the company adds: ‘In the imaging business we will review our product line-up by allocating management resources with a focus on mirrorless interchangeable-lens cameras and high-end compact cameras, while improving profitability.’

Does this mean the Olympus will no longer produce DSLRs? Another effect of Olympus’ company restructure is that it will no longer produce ‘low-end’ compacts, on grounds that these deliver ‘low-profit’ potential in its mature markets.

Olympus says it will ‘strive’ to ensure its imaging business breaks into profit by ‘March 2013′.

We wish them all the best!