Toshiba announced on Tuesday (1st) that President and CEO Satoshi Tsunakawa and Vice President Mamoru Hatazawa will resign. It comes after news that opposition to the company's controversial restructuring plan was running high, which the industry said could lead to the cancellation of Toshiba's planned spin-off.

According to Reuters, Satoshi Tsunakawa will remain in the CEO role on an interim basis, but it is not expected to be long. Former Siemens executive Taro Shimada, who only joined Siemens in 2018, will become the company's new interim head, and Goro Yanase, head of Toshiba's elevator business, will be named interim chief operating officer. The series of appointments took effect Tuesday.

Toshiba's original plan to split the group into three faced strong criticism from foreign hedge fund shareholders. But the revised plan last month also faced opposition from within the company, according to two people familiar with the matter. The plan calls for splitting the two companies and selling other businesses. The sources were not authorized to speak to the media and declined to be identified.

Responding to internal objections, Toshiba told Reuters it firmly believed its announced restructuring plan was the best option for the company, but declined to comment further. But Reuters noted that the surprise move, seen by some observers, cast doubt on whether Toshiba would be able to proceed with its recently revised spin-off plan.

"The split will be reconsidered - we think it's likely to be cancelled," said Justin Tang, head of Asia research at Singapore-based investment adviser United First Partners.

A Toshiba spokesman said the company has now made a decision on the new appointment as it wants shareholders to clarify who will lead the company before an extraordinary general meeting on March 24. The board will monitor performance and business execution and "will continue to consider the appointment of external candidates, as appropriate".

The EGM will also seek initial shareholder approval for the revised spin-off plan. Shareholders will also vote on a proposal from a major shareholder that would require Toshiba to explore other options and solicit takeover offers from private equity firms.