Telus Corp. T-T has slashed its dividend by 55 per cent and lowered its financial guidance for the year in a bid to improve its finances after a challenging period for the telecom and technology company’s share price.

The company’s move to cut its quarterly dividend to 18.75 cents per share from 41.84 cents per share marks a broadly anticipated move from its new chief executive officer, Victor Dodig, as he reorients the company’s finances and strategic direction.

Analysts have been raising concerns about Telus’s dividend growth plans since last year, when some called its previous plans to continue increasing its dividend unsustainable. Telus paused dividend growth last November, but has faced ongoing pressure from Bay Street to cut the payout.

The company said Friday the dividend cut is expected to generate about $2.7-billion in cash savings through 2028, which will be used to reduce its long-term debt.

Several analysts and investment managers told The Globe and Mail that the dividend cut had been baked in to the company’s stock price for months, which has fallen 20 per cent since the beginning of the year and is down 50 per cent over the last 5 years.