Shares in Capita (LON:CPI) plummeted more than 40 percent on Wednesday, after the company issued a profit warning.
The outsourcing company also moved to cut its dividend payments, as it looks re-assess group finances amid the difficult period.
As part of the overhaul, the company appointed a chief transformation office to oversee the process, as well a creating a new executive committee.
The group are also planning a rights issue to raise capital later on in the year, as they looks to get its finances back on track.
This comes mere weeks after construction giant Carillion announced its liquidation, after a breakdown between talks led by the government, the company and lenders.
As it stands, Capita is the largest business process outsourcing and professional services company in the UK, with an market share of 29 percent as of 2016.
The company’s major contracts include overseeing London’s congestion charge scheme, the Jobseekers’ Allowance helpline as well as collecting the licence fee on behalf of the BBC.
Chief Executive Jonathan Lewis, who took over in December, after a series of profit warnings, highlighted identifying cost efficiencies as an “immediate priority” for the struggling company.
He told investors: “We are now too widely spread across multiple markets and services, making it more challenging to maintain a competitive advantage in every business and to deliver world class services to our clients every time.
“Capita has underinvested in the business and there has been too much emphasis on acquisitions to drive growth. As our markets have evolved, the group has not responded consistently to new customer demands.
“Since December, we have continued to experience delays in decision making and weakness in new sales.”
He added: “Cost savings and non-core disposals alone will not be enough. We have also taken the significant decision to suspend the dividend and seek equity.”
Shares in the company are currently trading down 41.75 percent as of 12.30PM (GMT).