Belgium’s Proximus will eliminate 1,200 jobs by 2030 as part of an artificial intelligence-driven efficiency programme, a move that rattled investors and sent its shares sharply lower after the company also halved its dividend.
The restructuring, equivalent to around 15% of its workforce, forms part of a broader €180 million cost-saving plan aimed largely at reducing staff-related expenses. According to Reuters, chief executive Stijn Bijnens told investors the cuts would stem from AI-enabled automation and operational efficiencies rolled out over the coming years.
The company will also trim external workforce costs by €25 million by 2028.
Investors focused less on the savings and more on shareholder returns. Shares fell about 20% in early trading, heading towards one of their worst sessions on record, after Proximus said it would propose a dividend of €0.30 per share, down from €0.60 last year. The group said the reduction would help contain debt and preserve financial flexibility.
Brokerage NewStreetResearch described the dividend cut as the central takeaway from the earnings statement, questioning the rationale given otherwise steady guidance, Reuters reported.
The belt-tightening comes as Proximus accelerates infrastructure investment across Belgium. The company plans to spend up to €1.25 billion expanding its network, with a focus on fibre rollout. It currently connects 42% of Belgian homes to fibre and is targeting 60% coverage by 2035. A further 20% of households could be reached through partnerships, including with Orange.
Operationally, the picture was stronger. Proximus reported a 15.5% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to €2.3 billion, ahead of analysts’ consensus estimate of €2.1 billion, according to company-compiled forecasts cited by Reuters.
The group expects its core domestic business to remain stable in 2026. Its international unit is forecast to generate between €100 million and €130 million in operating profit.
For management, the logic is clear: short-term pain in exchange for long-term resilience. The company said it intends to rebuild the dividend to €0.50 per share by 2028 once investment peaks and leverage stabilises.
The challenge now lies in execution. AI-driven productivity gains will need to materialise quickly if Proximus is to justify both the workforce reduction and the dividend reset, while maintaining investor confidence in a capital-intensive telecoms market.
Source – https://www.peoplematters.in/news/strategic-hr/proximus-to-cut-1200-jobs-by-2030-as-ai-efficiency-drive-48609