If we needed any more proof of how starved Toshiba’s board is of innovative thinking (by the way Toshiba’s logo is “Leading Innovation”) the actions to cut wages, salaries, costs and travel highlight it in spades. Simply put, to exact more self inflicted pain across the entire group that is struggling to recover is corporate suicide. Toshiba should be picking its battles and investing in its portfolio of relative winners to climb out of the hole of its own making. Wages are not going to be the swing factor here. While it might help the P&L for a few months, the actions are likely to further demotivate an already demoralized labour force leading to further revenue declines. Instead of asking those at the coal face what process improvements and efficiencies have been overlooked that may save them a fortune they can’t think beyond cutting free biscuits in the tea room. Clients also notice when companies start to scrooge. No client sees value in forging relationships with companies that look increasingly likely to go out of business. Scans in America is considering canceling two nuke plants for this reason. When we tally the cost savings of cutting salaries, we can be guaranteed that Toshiba will meet its maker. Time to let it fall under the weight of its own incompetence and let sensible buyers of its business divisions rediscover latent asset value. For a company that has been in deep crisis for years, I don’t buy that they’ve realized they have a problem only recently. Toshiba has dropped another $1bn in market cap since yesterday. At that rate (limit down rules excluded) is technically worth nothing at that rate in a little over 7 more days.