Olympus said Friday it will cut about 2,000 jobs globally as part of a strategy to improve accountability and drive innovation and growth in endoscopy care.
The Tokyo-based company expects annual savings of about 24 billion yen ($156.6 million) from the changes, which will be implemented in fiscal years 2026 and 2027.
By reducing organizational layers and streamlining processes, Olympus plans to accelerate development of advanced endoscopy, driven by artificial intelligence, robotics and connected digital ecosystems. The company said it has the world’s largest installed base of endoscopy systems.
The job cuts and reorganization come shortly after a change of leadership at the company. CEO Bob White, the former president of Medtronic’s medical surgical business, joined Olympus in June.
The reorganization includes several additional executive changes. Keith Boettiger, corporate officer and co-head of the gastrointestinal solutions division, was named executive officer and gastrointestinal solutions division head, effective April 1. Boettiger will succeed Frank Drewalowski, who will become senior adviser to the CEO, focused on strategic priorities.
After more than four decades with the company, Yasuo Takeuchi will step down as representative executive officer, executive chairperson and environmental, social and governance officer at the end of March. White succeeded Takeuchi as CEO in June.
Under its new plan, the company is targeting revenue growth of 5% year over year by fiscal 2029, earnings per share of more than 10% on a compound annual basis and continuous improvement in free cash flow. The company will use capital to support innovation, dividends, share buybacks, and M&A.
Olympus has faced challenges in recent years, including an import ban from the Food and Drug Administration on some of its devices due to quality system failings at a site in Japan. The company is working to resolve a series of FDA warning letters and import alerts.
In July, Olympus announced a partnership with Revival Healthcare Capital to develop a robotic system for gastrointestinal treatments.
