Olympus Corp. reported second-quarter revenue growth returned to positive territory but announced workforce reductions affecting approximately 2,000 positions as the Japanese medical device manufacturer overhauls operations to address regulatory challenges and improve profitability.
The Tokyo-based endoscopy equipment maker posted revenue of ¥247.8 billion ($1.62 billion) for the July-September quarter, up 4% from a year earlier, with adjusted operating profit reaching ¥37.4 billion. The gastrointestinal solutions division showed resilience with 3% revenue growth despite intensifying competition in China, while surgical and interventional solutions advanced 5% on strength in European and North American markets.
Chief Executive Bob White, speaking at a November 7 presentation, cited ongoing engagement with the U.S. Food and Drug Administration regarding warning letters issued to the company. The FDA in June blocked imports of certain endoscopes from Olympus’ Aizu facility in Japan after determining quality system violations, affecting devices representing about 1% of consolidated revenue. White stated the company anticipates completing at least some regulatory inspections within calendar 2025.
The workforce reduction, spanning fiscal 2026 and 2027, targets run-rate savings of approximately ¥24 billion ($157 million) as Olympus transitions from a region-led structure to a simplified division-led model. The restructuring aims to reduce hierarchical layers and accelerate decision-making while maintaining investments in product development, according to company materials.
Olympus achieved a milestone in China with Jiangsu authorities certifying its first locally manufactured product in August, an extended depth-of-field gastroscope, with commercial launch approaching. The company also secured distribution agreements with MacroLux Medical for single-use urology devices and W.L. Gore & Associates for biliary stents, expanding its therapeutic portfolio.
The medical technology firm launched OLYSENSE, an AI-powered computer-aided detection system for gastrointestinal lesions, in the U.S. and select European markets in late October. Offered through a cloud-based subscription model, the system supports polyp detection and characterization in colonoscopy procedures, representing Olympus’ shift toward recurring software revenue alongside traditional hardware sales.
Emerging markets delivered roughly 20% year-over-year growth in the quarter, with Olympus expanding training programs in India, Latin America and Africa to address shortages of specialized endoscopists.
The company maintained full-year forecasts announced in August, projecting revenue of ¥998 billion ($6.52 billion) and adjusted operating profit of ¥157 billion ($1.03 billion). Operating margin stood at 15.1% in the second quarter, recovering from 11.9% in the first quarter as tighter expense controls offset increased U.S. tariff impacts on cost of goods sold.
