Proximus plans gradual job cuts amid reduced profits and AI shift
Telecom company Proximus will reduce its workforce in a “controlled and gradual” manner over the next few years, its management announced on Friday. The company also announced a halving of dividends following an 11 per cent fall in net profits.
The company presented new strategic plans on Friday. These state that it will “reimagine its way of working and focus on efficiency through simplification and AI, driving workload reductions”. In the process, jobs will also disappear, though Proximus says this will happen “without social disruption”.
Proximus employs some 13,000 people. The number of jobs to be lost is not yet clear, but the intention is that people who retire or leave the company will only be partially replaced.
The company announced its plans for its domestic and global activities on Friday, alongside its full-year and fourth-quarter results. In Belgium, it aims to become “a locally anchored digital infrastructure champion supported by trusted brands that resonate with all generations and industries”, CEO Stijn Bijnens said.
For the international arm, which recently recorded a 275 million euro write-down, a path has been mapped out for a “return to growth”.
Reduced dividends
However, shareholders will receive less dividend in the coming years. For the 2025 financial year, they will receive a gross dividend of 0.60 per share, and for the 2026 financial year it will be 0.30. Proximus expects an increase to 0.40 euros for the 2027 financial year and 0.50 euros for 2028.
Underlying turnover fell by 1.9 per cent to 6.31 billion euros last year. EBITDA rose by 1.8 per cent to 1.88 billion, but net profit fell by 11 per cent to 398 million. This is explained by the depreciation of the international division, the increase in depreciation and income taxes, partially offset by a 33 million euro increase in underlying EBITDA and lower financing costs, the company said.
Share price falls
Shares went deep into the red at the opening of the stock market on Friday following the news. The company started the trading day with a 17 per cent loss. At around 9:15, shares were trading at 6.93 euros, down from 8.31 euros at Thursday’s close.
The company also reports that 42 per cent of businesses and households in Belgium are connected to its fibre. The operator saw its customer base grow by 4 per cent to 1.22 million for its convergent residential offering. The number of customers giving up traditional television continues to rise, with Proximus now having 1.58 million subscribers, a fall of 3 per cent compared to 2024.
Earlier this week, telecom operator Telenet announced plans to cut its workforce by 10 per cent. About 350 jobs are expected to be lost.
Proximus CEO Stijn Bijnens (left) © BELGA PHOTO JAMES ARTHUR GEKIERE
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