Richard Li's Pacific Century Group takes over part of American International Group's investment advisory and asset management business for $500 million.
Hong Kong corporate has shifted its employees to defined contribution and needed extra providers.
Robert C Nicholson will be advising the PCCW board on future strategic transactions.
As well as laying off staff, the telco is significantly reducing its investment in Internet services.
Former JPMorgan executive Frederick S. Ma has been appointed an executive director of PCCW.
2cube joint-venture launched amid questions of investor protection.