The Verge - Trouble at Olympus: the story so far

Olympus confirms 2,700 layoffs, plans to focus on mirrorless and high-end compact cameras

2012-06-08T07:54:48Z

We heard last week that Olympus was planning to cut 2,500 jobs, but the truth is a little worse — the company has confirmed that it'll lay off around 2,700 people by March 2014. The move represents a reduction in workforce of about 7 percent. Olympus has outlined a 5-year vision for itself, forecasting a ¥7 billion ($88 million) net profit this year and setting the ultimate goal of reaching an 11 percent operating margin by 2017.

Apart from its profitable medical equipment business, the company plans to lift its photography division by focusing on its successful range of mirrorless cameras — exemplified by recent products such as the excellent OM-D E-M5 — and higher-end compacts such as the XZ-1. This move was hinted at recently...

Olympus to cut 2,500 jobs, consolidate overseas plants, sell 10 percent stake to Sony or Panasonic

2012-05-30T09:53:50Z

Japanese newspapers are reporting that Olympus will cut around 2,500 jobs — over seven percent of its total workforce — in an effort to stem its financial losses. The cuts will be announced on June 8th, and will come from the company's struggling camera business as well as the consolidation of overseas plants. Olympus has been in dire straits after recently admitting to accounting irregularities estimated at $1.7 billion.

In addition to the job cuts, Asahi Shimbun reports that the company is to sell a 10 percent equity stake for "tens of billions of yen" to either Sony or Panasonic. It's not the first time we've heard of possible partnerships, but Panasonic is a new addition to the list of potential suitors. Although known mainly for...

Olympus wants to trim camera portfolio, says incoming president Sasa

2012-04-05T11:03:39Z

Incoming Olympus president Hiroyuki Sasa has expressed a desire to cut back the company's camera line in an attempt to return to profitability. In an interview with the Japan Times, Sasa confirmed interest from several firms in the possibility of a partnership, but said that the company was still "studying various possibilities and scenarios." Sasa indicated that the company's camera portfolio was too expansive, and singled out its compact cameras in particular as an area where savings could be made.

This wouldn't come as a surprise to us — while Olympus has been largely instrumental in driving the success of mirrorless cameras, its less expensive point-and-shoot offerings tend to be fairly uninspiring, and it's no secret that that...

Olympus considering potential partnerships with Sony and Fujifilm, among others

2012-04-03T22:32:02Z

Olympus has had a bad year, to put it bluntly — it was revealed that the company lost over two billion dollars due to bad investments and tried to cover it all up. Despite all the troubles, however, the company might be getting some assistance from some powerful companies. German publication Der Spiegel is reporting that at least three companies are bidding to form partnerships with the strugglng camera-maker (who is also the world's biggest maker of endoscopes). President Hiroyuki Sasa indicated that both Sony and Fujifilm are interested, as well as medical systems company Terumo and a number of other unnamed companies. Olympus is looking to make a decision on a potential partnership by next month, but there's no indications yet as...

Tokyo prosecutors charge Olympus, three former executives, and three others with accounting fraud

2012-03-07T16:08:06Z

Olympus has been wracked with legal problems since former CEO Michael Woodford blew the whistle about the company's shady accounting back in October of last year. Now, Olympus, three of its former executives, and three others are all being charged with accounting fraud by the Tokyo District Public Prosecutor's Office. If convicted, Olympus faces fines of up to ¥700 million (about $8.6 million), while the executives involved each face fines of up to ¥10 million (about $124,000) and up to ten years in prison.

The troubles all stem from Olympus's attempt to cover up approximately $1.7 billion in losses by exploiting Japanese accounting loopholes, and the three non-Olympus defendants are suspected of coaching the company in how to do it....

Former Olympus chairman Kikukawa arrested over fraud

2012-02-16T07:01:07Z

Following a raid on Olympus's headquarters by Japanese prosecutors, the company's former chairman and six others have been arrested. Tsuyoshi Kikukawa is accused of violating the Financial Instruments and Exchange Act by covering up $1.7 billion in losses, which were exposed in part by the ex-company president and CEO Michael Woodford. Kikukawa was one of the 18 executives sued by Olympus over the scandal last month, along with former company auditor Hideo Yamada and former executive vice president Hisashi Mori, who were also arrested with four other members of staff. Not only do the employees face prosecution, but it looks like Olympus itself may well be subject to further criminal investigations as the full extent of the scandal...

Alleging fraud, Olympus sues its president and 18 other executives

2012-01-10T03:28:58Z

In the newest twist in the Olympus saga, the company is now suing its president, Shuichi Takayama, seeking damages for his role in the $1.7 billion dollar cover-up that has rocked the Japanese camera maker. Eighteen other executives, including three ex-directors, were named with Takayama, as part of an accounting fraud that took place over nearly a decade.

The firm hid investing losses in a series of supposed merger payouts; former CEO Michael C. Woodford was fired after questioning the practice. He's fought to be reinstated in the role, but is now preparing his own lawsuit for wrongful dismissal. Olympus has lost nearly 60 percent of its value since October, when the scandal first erupted, and the current board of directors is slated to...

Olympus headquarters raided by Japanese prosecutors

2011-12-21T05:18:03Z

The financial scandal at Olympus has turned into a legal one. Several sources report that Japanese prosecutors have raided Olympus' headquarters, offices belonging to business partners implicated in the scandal, and executives' homes. Japanese television showed the raids live, with "dozens of black-suited investigators marching double file" into one building.

The raids came after Olympus itself admitted to wrongdoing. An independent report had estimated the covered up losses at $1.7 billion, but Olympus itself said it covered up $1.5 billion in a last-minute filing to the Tokyo Stock Exchange. The filing came just in time to keep the stock from being delisted, but that could still happen if the raids turn up further evidence of...