BT CEO Gavin Patterson is set to depart by the end of the year following the "broader reaction" to the struggling telco's financial results.
The telecoms giant last month announced restructuring plans alongside its yearly numbers - which showed a one percent year-on-year revenue decline during the 12 months ending 31 March 2018.
These proposals include cutting 13,000 jobs in order to save £1.5bn over the next three years.
BT chairman Jan du Plessis thanked Patterson for his 14-year service to the company, but said that new leadership is needed to work through the restructuring.
"The board is fully supportive of the strategy recently set out by Gavin and his team," he said.
"The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy."
Patterson, who was a BT board member for 10 years before becoming CEO in 2013, said that he was "immensely proud" of what he had achieved during his time with the organisation, highlighting the launch of BT Sport and the purchase of mobile network EE as key accomplishments.
The news of Patterson's imminent departure was welcomed by investors, with BT's share price initially rising 2.5 per cent to 208p the morning of the announcement.
In recent years, BT has struggled with increased market competition and dwindling revenues, along with a record £42m fine from Ofcom and difficulties in its troubled Global Services division.
Martin Courtney, principal analyst at TechMarketView, said that the news is not a surprise, and that Patterson's successor won't have an easy job.
"The first priority for whoever takes the hot seat is to arrest the decline of BT's enterprise divisions, particularly BT Global Services, which many feel have been neglected as BT poured resources into expanding its consumer broadband, mobile and media businesses," he said.
Courtney also said that the company must go "further and faster" to regain its momentum among public and private sector buyers.
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