Business Tech

Japan’s Olympus Corp plans to cut 2500 jobs

TOKYO (Reuters) – Olympus, destabilized by an accounting fraud estimated at $ 1.7 billion (1.36 billion), plans to eliminate 2,500 jobs and sell a participation in Sony or Panasonic to consolidate its finances, reported  Japanese media on Wednesday.

The specialist Japanese cameras and medical equipment just to restore the situation after the accounting fraud scandal unveiled last year by Michael Woodford when it was the CEO. Olympus had to correct the published accounts for several years, which severely degraded the quality of its balance sheet.

The planned job cuts, representing about 7% of the total, the division will mainly cameras, deficit, and result from a decrease in the number of group factories outside Japan, according to Japanese business daily Nikkei, which states that they should be announced June 8.

Sony and Panasonic take the rope to enter the round of Olympus, for its part understands Asahi, adding that the successful candidate will spend several hundred million dollars for a stake of more than 10%. The decision is expected in late June, according to Asahi.

The action Olympus jumped 4% on those ads but still shows a decline of nearly 50% from its level prior to the revelation of the accounting scandal by Michael Woodford in October.

Sony and Panasonic, who are struggling to refloat after announcing record losses, have instead been sanctioned with a decline in their title by 1.9% and 2.2% respectively in the Tokyo Stock Exchange whose benchmark, the Nikkei 225, has only yielded 0.28%.

Panasonic plans to part with half of the 7,000 employees of its office after removing 17,000 positions during the fiscal year ended March 31. Sony has in turn announced the elimination of 10,000 positions.

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