Telstra, Australia's biggest telecoms company, plans to cut 8,000 jobs - a quarter of its workforce - in a bid to slash costs.
Among the plans is a the creation of "InfraCo" a "wholly owned infrastructure business unit" Telstra says will "drive performance and provide future optionality for a demerger or the entry of a strategic investor in a post-NBN rollout world".
It is the latest in a string of job cuts made by Telstra in recent years.
"In the future, our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change". It would contain assets of about $11 billion, revenue of about $5.5 billion and earnings before interest, tax, depreciation and amortisation of about $3 billion.
Chief executive Andy Penn said the dividend for FY18 would be 22 cents per share and dividend decisions for FY19 would be announced during the financial year.
'This means that some roles will no longer be acquired, some will change and there will also be new ones created'. Telstra is going to sacrifice about $500 million of revenue over the next three years to make its offerings more competitive, including eliminating excess data charges from its contracts.
The share market was informed of Telstra's plans on Wednesday morning before the market opened.
The cuts come less than a month after Telstra warned its 2017/18 earnings will likely be at the bottom of its guidance range of $10.1 billion to $10.6 billion, blaming increasing competition in mobile and fixed broadband, and rising costs from the national broadband network.
That's where the job losses - including the wiping out of two to four layers of management - stem from.
"As technology innovation is increasingly relying on connectivity, the role of telecommunications infrastructure is becoming more important", Penn said.
"In this environment traditional companies that do not respond are most at risk", he added. It will include fixed networks, data centres, non-mobile fibre, the HFC network, worldwide sub-sea cables, exchanges, ducts, pipes, NBN-related revenues and relationships and Telstra Wholesale.