Endeavour Group Ltd (EDV.AU) saw its shares plummet 5.03% during intraday trading on Wednesday following a major strategy update from the company.

The sharp decline came as the company unveiled a sweeping strategic overhaul targeting A$300 million in cost savings by fiscal 2029, including A$100 million in fiscal 2027. The plan also includes exiting the majority of its existing winery and vineyard portfolio, including Chapel Hill, Oakridge and Josef Chromy.

Investors reacted negatively to the company's revised dividend policy, which now targets a payout ratio of 50% to 75% of underlying net profit after tax, down from its previous policy. The strategic reset also involves repositioning its retail brands Dan Murphy's and BWS, and simplifying its hotels operating model.