Toshiba to spin off energy, computer units

TOKYO — Embattled Japanese technology conglomerate Toshiba said Friday it is restructuring to improve its competitiveness, spinning off its energy infrastructure and computer devices businesses.

The energy infrastructure spinoff will include Tokyo-based Toshiba Corp.’s nuclear power operations, including the decommissioning efforts at the nuclear plant in Fukushima that suffered meltdowns after an earthquake and tsunami in March 2011.

The energy business will also include the company’s sustainable energy and battery businesses. Its annual sales total about $18 billion.

The other spinoff and stand-alone company encompasses Toshiba’s computer devices and storage operations, with annual sales of $7.6 billion.

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.

Earlier Friday, Toshiba issued a statement promising to beef up its corporate governance. An investigation by a governance group found no illegalities, but some managers engaged in dubious practices related to blocking the views of some shareholders.

Toshiba has periodically run into governance problems, including a scandal in 2015 over accounting books that were doctored for years to inflate earnings.