Olympus to cut 2,000 jobs as it unveils new corporate strategy

Olympus today announced a new strategy to transform endoscopy-enabled care that aims to increase cost savings and reduce its workforce by thousands.

The Tokyo-based company said part of its new comprehensive strategy includes implementing a global organizational transformation to align structure and resources with its strategic priorities.

As a result, Olympus expects a net reduction of roughly 2,000 positions across its global workforce — about 7% of the 29,297 headcount it disclosed on March 31. (Read more about the medtech industry’s layoffs over the past several years.)

The company expects its changes to yield approximately 24 billion yen (more than $150 million) in run-rate savings. It plans for the optimization to simplify organizational layers and expand managerial spans of control. Olympus said the shift fosters agility and clearer accountability.

President and CEO Bob White recently explained his plans for the future of Olympus to MassDevice. Read more here.

Altogether, the company said its new strategy aims to accelerate cutting-edge technologies and reinforce Olympus’ leadership in medtech. The company said it plans for the implementation period to span from fiscal year 2026 to fiscal year 2027.

Shares of OLYMY were down nearly 3% at $11.86 in the early morning on the OTCMKTS market after the company’s announcement.

“Today marks a pivotal moment for Olympus,” said White. “We are building on our industry-leading installed base of endoscopy systems to move beyond hardware toward a future defined by intelligent, integrated care. By simplifying our organization, we are enhancing agility and making bold investments in the next generation of medical technology. Guided by our strong purpose and core values, Olympus is committed to setting new standards in endoscopy-enabled care and delivering better care for millions of patients around the world.”

More on the company’s strategy

Olympus says it wants to deliver advanced, minimally invasive endoscopy powered by AI, robotics and digital ecosystems to enable earlier detection, improve clinical outcomes, enhance patient safety and ensure continuity of care.

The company says it already has the world’s largest installed base of endoscopy systems. With significant unmet clinical needs across the care pathway, it believes it can scale innovation globally. The company hopes to “redefine standards in endoscopy-enabled care.”

Olympus’ new strategy has three strategic pillars: innovation-driven growth, simplicity and accountability.

The company said its growth pillar focuses on expanding leadership in AI-powered endoscopy, robotics and cloud-connected solutions. White outlined the company’s recent Swan EndoSurgical surgical robotics play when speaking with MassDevice recently, and spoke about the significance of AI.

Simplicity and accountability reflect operational accelerators, streamlining processes, empowering teams and driving sustainable performance, Olympus said.

The company expects sustained value as a result of its new plan. It targets 5% year-over-year revenue growth by fiscal year 2029, plus more than 10% earnings per share (EPS) compound annual growth rate (CAGR). Olympus also anticipates continued improvement in free cash flow.

According to the company, it expects to deploy capital dynamically to support innovation, dividends, share buybacks and strategic M&A.

Olympus shakes up leadership team as part of shift

With its new setup being put into place, Olympus announced a number of leadership changes.

First, it appointed Keith Boettiger as executive officer and the head of the Gastrointestinal Solutions Division effective April 1, 2026. Boettiger currently serves as corporate officer and co-head of Gastrointestinal. He succeeds Frank Drewalowski, who transitions to the post of senior advisor to the CEO to support Olympus strategic priorities.

Additionally, Olympus said Yasuo Takeuchi plans to step down as representative executive officer, executive chair and ESG officer at the end of March 2026. This concludes four decades of service at Olympus.

Takeuchi took over as Olympus president and CEO in 2019, leading the company’s transformation into a pure-play medtech company. He initially stepped down as CEO as part of a transition plan in 2023, but took the corner office back in an interim role in October 2024 after the resignation of his successor, Stefan Kaufmann, over accusations that he bought illegal drugs. Takeuchi formally left the CEO position after White’s appointment went into effect in June.

Olympus said that, under Takeuchi’s leadership, it company strengthened its governance, enhanced board diversity, and “laid the foundation for Olympus’ next phase of growth as a global medtech leader.”