TalkTalk Group has confirmed that the company will split into three standalone companies.
In doing so, the UK broadband provider has also announced a series of leadership changes, and has warned some jobs could be lost at the company.
As part of the separation of its business, the company said that three independent companies will be created, focusing on B2B, consumer, and small businesses.
The three companies will be known as B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct.
Current CEO Tristia Harrison will oversee the transition, but is stepping down and will move to a non-executive director of the B2B Wholesale Platform.
She will chair a newly established Oversight Board through to the point of legal separation on March 1, 2024. Harrison has been the Group CEO since 2017.
The new companies will become operationally separate from November 1, 2024, and will legally split from March 1, 2024, confirmed TalkTalk.
All three businesses will be headquartered in Salford, UK, and will continue to be supported by existing TalkTalk Group shareholders.
TalkTalk did state that changes will lead to job cuts, noting a "limited number of redundancies, primarily from central corporate functions."
Announcing other leadership changes, Tom O’Hagan, founder of Virtual1 and current MD of TalkTalk Business Wholesale, will be CEO of the Wholesale Platform, while Adam Dunlop, the former MD of iD Mobile and current MD of TalkTalk Consumer and supply & partnerships, will be CEO of TalkTalk Consumer. Ruth Kennedy will remain as MD of TalkTalk Business Direct.
Earlier this month US investment firm KKR announced an agreement to provide a £75 million ($93.5m) loan to TalkTalk.
Founded in 2003 as a subsidiary of mobile phone retailer Carphone Warehouse, TalkTalk founder Charles Dunstone spun off the firm to become an independent company in 2010.
The company serves over four million customers in the UK and is understood to have been up for sale in the last couple of years.
UK telco Virgin Media abandoned plans last year to acquire TalkTalk following months of talks, while other industry rivals including Vodafone Group, BT, and Sky have all shown interest in buying TalkTalk.
The deal with Virgin Media was estimated to be worth £3bn ($3.74bn), although city analysts questioned whether TalkTalk was worth this amount.
The company was taken private last year following a £1.1bn ($1.37bn) deal with investment firm Toscafund, with the business valued at £2bn ($2.5bn) including debt.
Earlier this year, TalkTalk was reportedly planning to offload its B2B division, TalkTalk Business Direct.