Proximus, Belgium’s telecom operator, has announced it will cut 1,200 jobs by 2030. That means about 15 per cent of its workforce will be let go as part of a major cost-saving plan. The company says artificial intelligence and automation will replace many tasks, helping streamline operations and reduce expenses.
Alongside job cuts, Proximus also plans to save €25 million by reducing its reliance on external contractors by 2028. Altogether, the program aims to trim €180 million in staff-related costs.
Proximus Group has a growing presence in India, highlighted by the establishment of a Global Capability Centre (GCC) in Bengaluru to leverage local talent and operational efficiency. The group significantly expanded its footprint by acquiring a majority stake in India-based Route Mobile.
The announcement came with tough news for shareholders. Proximus said it would halve its dividend from €0.60 to €0.30 per share to manage debt and maintain financial flexibility. Investors reacted sharply, with shares dropping around 20% in early trading. Analysts noted that the dividend cut overshadowed the restructuring plans, even though the company reported stronger-than-expected earnings.
At the same time, Proximus is investing heavily in infrastructure. It plans to spend up to €1.25 billion to expand its fibre network, aiming to connect 60% of Belgian households by 2035. Currently, 42% are connected, with another 20% expected through partnerships, including with Orange.
Despite the looming job losses, Proximus showed resilience in its latest results. Management says dividends should recover to €0.50 per share by 2028 once investment spending eases. But success will depend on how well Proximus manages the workforce cuts, delivers AI-driven productivity, and balances heavy capital spending in a competitive telecom market.
