LONDON (Bloomberg) ? Cable & Wireless Plc said chief financial officer Charles Herlinger will step down as part of an organisational overhaul that will cut the size of its board by two-fifths.

Herlinger, 50, will leave the company at the end of May. Non-executive director Tony Rice, 53, will take up a new role of group managing director, central and finance director, the company said.

Cable & Wireless, whose chief executive officer Francesco Caio will step down tomorrow, is reorganising into two main units, one in the UK and the other to run the international business. The company last month said it will cut as many as 3,000 UK jobs as competition with rivals such as Thus Plc intensifies.

The management revamp is carried out ?with the objective of creating a smaller body more aligned with its requirements under the new organisation,? Cable & Wireless said.

The company will cut the size of its board to nine members, from 15 last year.

Shares of Cable & Wireless rose two pence, or 1.9 percent, to 109.75 pence in London. The stock had dropped 14 percent in the past year, compared with a two percent decline by the 25- member Bloomberg Europe Telecommunication Services Index.

Cable & Wireless, which has a substantial operation oin Bermuda, is increasingly relying on units abroad such as in the Caribbean to prop up revenue. The company?s net income more than halved to ?92 million ($160 million) in the fiscal first half through September as price declines eroded profitability.

CEO Caio announced his resignation in January. Instead of filling his post, the company named separate heads for the UK and abroad, and forecast at the time that profit at the UK division won?t rise next fiscal year.