Corporate telecoms group Cable & Wireless says it will cut 1,500 jobs, exit the United States and suspend dividend payments for a year after it plunged to a £6.5 billion annual loss.
C&W announced it would take a £1.5 billion charge to reflect the falling value of its assets, on top of a £3.5 billion charge taken in the first half.
The firm's battered shares fell 10 per cent to 87p in early trading on the London stock exchange.
C&W said it would cut 1,500 jobs as it attempts to turn around its traditional business in Britain, where it is second in market share only to former monopoly BT Group.
The group will exit its US operations and "all options are being explored". It said it would give details on the cost of withdrawal as the plan progressed. Analysts had anticipated either a sale or complete closure of the US business.
The company will instead focus on its national fixed and mobile telecoms units which have previously been lumped into its regional arm.