As we told you a couple of days ago Olympus financial results are pretty bad (Click here to read the article). Yesterday the new CEO from Olympus (the brit Michael Woodford) said “he will cut jobs to achieve his mid-term cost targets and reverse what he said was an unacceptable slump in earnings, but would avoid forced redundancies in Japan for cultural reasons.“…”He said that he planned to cut expenses by 30 billion yen (100 yen = RM3.75)in four years, describing this as a target that took into account Japan’s conservative culture.” (Source: btimes.com.my).
Hmmm, I think cutting jobs is the worst way to save a company. The real problem from Olympus is the camera division which is doing very bad. The rest of the company is quite healthy. That kind of news sounds like, “hey we don’t know what to do with our camera business and that’s why we will cut the expenses to save our ass”. What about making better products instead of cutting jobs???
P.S.: A month ago Panasonic announced that it will cut 35,000 (overseas) employees (Click here to read that article).