Toshiba CEO Satoshi Tsunakawa has unexpectedly resigned. Tsunakawa’s decision is a symptom of the growing opposition to Toshiba’s restructuring plans.
In late 2021, Toshiba announced that it wanted to split into three divisions. In recent months, internal opposition to the restructuring plans has grown significantly. The plan states that the energy and infrastructure division and the device and storage division will continue independently. Toshiba itself will mainly manage the interests of the various companies it participates in, either as a major or minor shareholder.
By splitting the company, the Japanese tech group wants to regain the trust of shareholders. Toshiba faced multiple scandals in the past few years. A split would encourage shareholders to sell their shares.
The change of plans failed to convince all shareholders, leading to Satoshi Tsunakawa’s resignation as CEO of the tech group. He will retain an interim position as chairman of the Supervisory Board. Taro Shimada will succeed Tsunakawa.
The effect of Tsunakawa’s resignation
According to Toshiba, the tech group is sticking to its plans. Toshiba believes this is the best move for the company’s future. On the other hand, analysts speculate that the top-level change might affect the proposition. Following Tsunakawa’s resignation, Toshiba shares rose 3 percent.