The Wire Cutter is a tool that can be located while exploring the Labyrinth in Silent Hill 2. The wire cutter is found forcefully jammed into a fuse box in the same room as the Rotating Cube Puzzle, just after speaking with Maria. There will be an audible sound of the circuits generating sparks coming from the damaged fuse box, drawing attention to it.
The wire cutter is required to open the pathway directly in front of the elevator that brought James Sunderland to the Labyrinth. There will be a tangle of metal wires blocking the doorway, prompting him to use the cutter to get through. The newly opened path will eventually lead to the fight with the Abstract Daddy, and also if taking a side route, a meeting with Pyramid Head.