Don't cut! Take it out of the pot and take a look at the roots. That wrinkling is from dehydration, but that can be caused by bad roots (plant unable to take up water). Since that's an older growth, it is possible that the particular growth is just on its way out, which is normal if the roots on the newer growths look good. But as long as the pseudobulb is firm, it is contributing to the plant even if the leaf drops and its roots are gone.) Don't cut anything green - that's the plant's reserves while new growth is developing.
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