"Corrado is leaving the business, this happened on his watch," the company said.
BT stunned investors earlier this week when it took a 530 million pound writedown of its Italian unit, saying that an accounting scandal at the business was far bigger than first realised.
A person familiar with the situation also said that BT was set to appoint Andrea Bono, currently running its Switzerland operations, to become its chief executive of the Italian unit.
(Reporting by Kate Holton; editing by Sarah Young)
