Olympus has discussed, analyzed and concluded, as expected, in a press statement. In principle, it is about confirmations of the statements in April. The company has lost $1.7 billion in accounting frauds.
Staff will be reduced with 2,700 (about 7%) of the over 34,000 employees by March 2014 and business strategy will include signing capital alliances, also being taken into account the sale of shares, as President Hiroyuki Sasa said, reports Bloomberg.
Alliance offers came from several large Japanese companies, like Sony, Fuji and Terumo, which are operating in the field of medical products. Also, it would not be excluded an injection of capital from Sony or Panasonic.
Business direction will focus more on the imaging, medicine and research divisions. By March 2017, the company aims to increase capital by 30%. Olympus is the largest manufacturer of endoscopes in the world, controlling 75% of this market. In fact, this was the most profitable segment of the company, covering the losses in the imaging business.
Imaging division will focus on mirrorless cameras and high-end compacts. In the medical field, it aims to develop for emerging markets, including China and India.
“We will withdraw from the businesses we consider insufficiently profitable and with low potential,” Olympus officials said. “We will not make new investments in other areas than those covering key points of the business.
The company will likely announce a net income of 7 billion yen ($ 88 million) this year, which is well below the 25 billion yen estimated by analysts. The operating profit could be around 50 billion yen, compared to the 63.4 billion yen estimated by analysts.