Proximus Plans 1,200 Job Cuts by 2030 as AI-Led Cost Reforms Accelerate

Proximus, a Belgian company, plans to implement an AI-driven efficiency program that includes the elimination of 1,200 positions by 2030. In addition to halving its dividend, this action has alarmed investors, causing a precipitous decline in the stock price. Reducing staff-related expenses is the primary goal of the wider €180 million cost-saving plan, which includes the restructuring of around 15% of its personnel.

The layoffs would be the result of operational efficiency and AI-enabled automation that will be implemented over the next few years, according to multiple media reports. CEO Stijn Bijnens reportedly informed investors of this plan. By 2028, the business plans to have saved €25 million in expenditures related to its external personnel.

The Core Reason Behind the Layoffs

Proximus is speeding up infrastructure spending across Belgium, which is why they are tightening their belts. With an emphasis on fibre rollout, the business intends to invest up to €1.25 billion in network expansion. With a goal of 60% coverage by 2035, it is now able to connect 42% of Belgian homes to fibre. Collaborations, such as with Orange, could allow us to reach an additional 20% of households.

The emphasis of investors shifted from cost savings to profits for shareholders. Proximus announced it will propose a dividend of €0.30 per share, down from €0.60 last year, and shares plunged around 20% in early trade. Hence, shares are heading towards one of their worst sessions on record. They claimed the cut would keep debt in check and keep budgetary flexibility intact. With an otherwise consistent outlook, Broking NewStreetResearch defined the dividend cut as the most important takeaway from the earnings report.

Financial Outlook of Proximus

From an operational standpoint, Proximus looked better. According to projections compiled by the company, experts had predicted €2.1 billion in earnings before interest, taxes, depreciation, and amortisation (EBITDA). However, the actual result was a 15.5% increase to €2.3 billion. In 2026, the group anticipates that its primary domestic business will maintain its stability.

The operational profit for its foreign division is expected to range from €100 million to €130 million. In exchange for long-term resilience, management is willing to put employees through short-term suffering. Once investment reaches its peak and leverage stabilises, the corporation plans to restore the dividend to €0.50 per share by 2028. Execution now presents the challenge. To justify the personnel reduction and dividend reset, Proximus must see AI-driven productivity improvements materialise rapidly. Investor confidence must be maintained in the capital-intensive telecoms sector.