Babcock & Brown underlined its desperate situation yesterday, announcing a radical plan to sell all operations barring its core infrastructure investment activities and more than halve its workforce.

The Australian investment group's decision to hoist the "for sale" sign on its rail and aircraft operating leasing and real estate activities appears to be a last-ditch attempt to reinvigorate its debt-laden balance sheet. It is cutting its employees from 1,450 to 600.