Olympus has admitted years of accounting irregularities estimated at $1.7 billion. Suggestions were being made implicating links to organised crime within the firm, however these appear to be largely unfounded. A damning report has been published by an independent panel appointed to investigate the scam.
Olympus has confirmed that it will lay around 2,700 people off by March 2014.
Japanese newspapers are reporting that Olympus will cut around 2,500 jobs and sell a 10 percent equity stake to either Sony or Panasonic.
Incoming Olympus president Hiroyuki Sasa has expressed a desire to pare back the company's camera line in an attempt to return to profitability.
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.
Olympus, former executives, and others were charged with accounting fraud by the Tokyo District Public Prosecutor's Office.
The former chairman of Olympus, Tsuyoshi Kikukawa, has been arrested along with two executives and four members of staff over allegedly violating the Financial Instruments and Exchange Act by covering up $1.7 billion in losses.
In the newest twist in the Olympus saga, the company is now suing is 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 financial scandal at Olympus, where it concealed $1.5 billion in losses, has now turned into a legal one. Several sources report that Olympus' headquarters have been raided by Japanese prosecutors along with offices belonging to business partners implicated in the scandal and the homes of executives. The investigation into the Olympus cover up is a coordinated effort between prosecutors, police, and securities regulators. Japanese television reportedly showed the raids live, with "dozens of black-suited investigators marching double file" into one building.
Official report confirms concealment of $1.7 billion in losses at Olympus.
A source close to the investigation into Olympus' accounting discrepancies has told Reuters that the investment losses hidden by Olympus since the 1990s peaked at $1.7 billion.
Reuters and The New York Times report that Olympus is suspected of being involved with a well-known underworld organization. The Asahi Shimbun also releases new specifics on the results of a third-party committee tasked with finding out what happened.
Olympus confirmed this morning that losses on securities investments accumulated since 1990 were concealed through massive merger payouts, contrary to its earlier statement refuting any allegations of wrongdoing.