Olympus reducing production capacity

Due to fierce competition in the digital camera market, Olympus is to cut production costs by 30% reports Bloomberg.

The news follows the trend of earlier announcements that Olympus (the world's fourth largest camera manufacturer), is to cut 4,000 jobs, 13% of its global workforce. The long term aim is to recover some profit after Olympus reported its first ever annual loss last month. The job cuts will save the company around ¥3 bn.

Bloomberg says Olympus expects shipments of digital cameras to rise from 8.9m to 9.5m this year with the release of two SLRs aimed at pros and serious amateurs. This is where the big profit margins lie as indicated by Nikon relasing another 3 new models this year. the rumours are the Nikon D80, the Nikon D90 and the Nikon D200.

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