The part state-owned Telecom company Proximus has announced plans to shed 1,200 jobs between now and 2030. The company says that it will reduce its workforce in a “controlled and gradual” manner over the next few years. The company also announced a halving of the dividends it will pay its shareholders following an 11% fall in net profits.
At a press conference on Friday morning the company presented its new strategic plan that states that Proximus will “reimagine its way of working and focus on efficiency through simplification and AI, driving workload reductions”. This will result in job cuts that company says will be achieve through natural wastage.
Proximus currently employs 13,000 people. The company aims to reduce its staffing levels by just under 10% by only partially replacing staff that retire or leave the company for another reason.
A Friday morning’s press conference Proximus’ CEO Stijn Bijnens stated that the company intends to become “a locally anchored digital infrastructure champion supported by trusted brands that resonate with all generations and industries”.
Reduced dividends
Proximus shareholders will receive lower dividend in the coming years. For the 2025 financial year, they will receive a gross dividend of 0.60 euro per share, and for the 2026 financial year it will be 0.30 euro. Proximus expects an increase to 0.40 euro for the 2027 financial year and 0.50 euro for 2028.
Proximus 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% loss. At around 9:15, shares were trading at 6.93 euro, down from 8.31 euro at Thursday’s close.
Earlier this week, another telecom operator Telenet announced plans to cut its workforce by 10%.