BT CEO Gavin Patterson has announced he is to step down after five years at the top, as the organisation faces down a revolt among shareholders unhappy with his performance.
BT said the board had already commenced a search to identify his successor, and expects to have a new head in place before Christmas 2018.
Jan du Plessis, chairman of BT, thanked Patterson for his contribution but said the company needed a change in leadership.
During his time at the helm, Patterson has overseen a number of changes in the business, not least its entrance into the TV market.
Patterson, who has led BT for nearly five years, announced 13,000 job cuts last month in an attempt to address multiple pressures on the business.
Days after the news of the job cuts, BT revealed Patterson was paid £2.3m a year ago, including a £1.3m bonus and a 1.5% rise in his basic salary.
Patterson said: "I've been immensely proud of what we've achieved, in particular the transformation of the business in recent years with the launch of BT Sport, the purchase and integration of EE, and the agreement to create greater independence for Openreach".
However investors have been concerned by an accounting scandal and £530 million writedown at the Italian division of BT Global Services and the reaction to a restructuring last month.
BT shares spiked following the announcement.
Patterson received a total of 2.3 million pounds ($3.1 million) in the year to the end of March, according to the company's annual report - basic pay of 997,000 pounds plus a 1.292 million pound bonus.
Patterson was also embroiled in fractious talks with Britain's telecoms regulator Ofcom about the fate of Openreach, which runs the national broadband network.
The plan would save the former United Kingdom telecommunications monopoly an estimated £1.5 billion ($2 billion) over three years.
Analysts at UBS said the fact that the board supported the strategy suggested no significant strategic changes. The first and most important is the share price.