AT&t Inc. said it will stop selling the company’s hand-planer software and plans to stop supporting its wireless service for new customers starting in March, in the latest blow to the struggling mobile phone company that has become a symbol of the telecom industry’s failure.
AT& T plans to make the changes as part of a wider restructuring plan aimed at rebounding the battered business as it continues to face increasing competition from Alphabet Inc.’s Google and Apple Inc.’ s iPhone unit.
The move will likely hurt AT& t’s share price, which is now hovering around $24 a share after the stock plunged more than 30% last week.
AT & t Chief Executive Officer Randall Stephenson said on Wednesday that the changes would “continue to hurt” AT& tc’s profitability, which was hit by declining mobile phone revenues, an industry report said on Thursday.
The company said it plans to start selling a more cost-effective hand-over-mobile phone plan, but not a plan that will replace the software that is essential to the phone planers.
ATs software will be replaced with an “app-like” plan that includes apps for other mobile devices and a new mobile plan, it said.
AT’s hand planer software, which includes phone calls, texts and calls on a voice-over Internet protocol, is used to keep customers connected to the service provider.
The software was first released in 2007.
In recent years, AT&ts phone plan is used by more than a billion customers and accounts for about 40% of its revenue.
The wireless division, whose revenues have been shrinking for years as more people ditch cable and satellite TV subscriptions, has been trying to find a new business model to make ends meet.
AT is also facing pressure from its rivals, including Google Inc., which is pushing to launch a competing mobile phone service.
AT has said it would invest $1 billion to buy out Verizon Communications Inc. for $49 billion.
AT says it has more than 3.6 million employees and has plans to hire an additional 2,000 employees as part to refocus the business.
Stephenson told shareholders on Wednesday the changes to AT&Ts plans would “help us focus on what really matters in the long term.”
AT&tg has about 7,500 employees.