Woodford abandons plans to return to Olympus

Woodford to sue for unfair dismissal

As we reported yesterday Michael Woodford, the recently ousted President and CEO of Olympus, has clarified his position regarding a bid to return to the Olympus board and to recapitalise the company. It was no surprise that Woodford announced that he is abandoning these plans.

Without key support from Olympus staff in Japan and Japanese investors, there was no chance that Woodford could force a new start at Olympus, replacing the board and returning to lead a new one. Instead, Woodford is to sue Olympus for unfair dismissal and revealed that the affair since he was ousted has caused his family emotional distress.

Olympus claimed Woodford was sacked because of a clash in leadership style, despite promoting him twice to President and CEO last year. Woodford publicised a multi-billion dollar financial scandal within the company and alleges this was the reason for his dismissal.

It now seems likely that the majority of the company board at Olympus that sacked Olympus will retain power for the time being and set in motion their preferred plans for reviving Olympus' financial circumstances. This could mean surrendering the company's independence to key rivals like Sony and Fujifilm. Woodford disagrees with this strategy and had promised to keep the company mostly as it was but with fresh capital from both new and existing investors.