Toshiba will remain a third independent company,
holding what’s left, such as its flash memory
company Kioxia Holdings Corp. and Toshiba Tec
Corp., which makes office equipment.
Such a major restructuring is unusual for a big
Japanese company. But Toshiba is not alone in
deciding that a sprawling conglomerate may not
be the best fit for the times.
Earlier this week, General Electric announced it
was dividing itself into three public companies,
focused on aviation, health care and energy. Like
Toshiba, GE struggled under its own weight and
decided to streamline its main business after a
long review.
Toshiba said its restructuring would be
completed by March 2024. Separating the
financial results of the companies will start
from this fiscal year, it said.
Chief Executive Satoshi Tsunakawa said the two
kinds of businesses being spun off were very
different, with the business cycle for devices much
faster than that for infrastructure, and the device
business requiring heavy investments.
“It will unlock immense value by removing
complexity, it enables the businesses to have
much more focused management, facilitating
agile decision making, and the separation
naturally enhances choices for shareholders,”
Tsunakawa said of the new structure.
The move still needs shareholders’ approval. A
shareholders’ meeting will be held early next year,
Tsunakawa said.
In a statement to shareholders, Toshiba said its
“bold and ambitious plan” followed a five-month
review by the board’s strategy committee.