Olympus may slash jobs in push to hike margins

Bloomberg

Olympus Corp is considering job cuts as the medical device and camera maker pushes forward with plans to almost double operating margin in the medium term, Chief Executive Officer Yasuo Takeuchi said.
“The issue of personnel will naturally need to be addressed,” Takeuchi, who was promoted from chief financial officer in April, told reporters in Tokyo . “It’s a strategy to improve performance, and something that will come about in due course.”
The manufacturer of cameras and endoscopes has been implementing restructuring measures since US hedge fund ValueAct Capital Management, which owns 5% of Olympus, added two directors to the board earlier this year. The move was viewed as a rare victory for activist investors in a market historically resistant to investor demands. Investor sentiment has been high, with the shares doubling this year.
Takeuchi also backtracked on some of his comments in the past that the camera business was not for sale, saying that may not be the case anymore. The imaging unit, which makes up 6% of sales, is the lowest margin and lowest growth businesses in Olympus’s portfolio.