By Leo Marchandon Feb 27 (Reuters) - Belgian telecom operator Proximus said on Friday it would cut jobs as part of an AI-driven effort to reduce costs, as a halving of its annual dividend pushed its
Proximus to cut 1,200 jobs as dividend halves and shares slide
By Leo Marchandon
Feb 27 (Reuters) - Belgian telecom operator Proximus said on Friday it would cut jobs as part of an AI-driven effort to reduce costs, as a halving of its annual dividend pushed its shares towards their worst trading day ever.
Proximus cost-cutting, dividend reduction and outlook
AI-driven workforce reductions and efficiency programme
Proximus will cut 1,200 jobs by 2030 due to AI-related efficiency measures, equivalent to 15% of its workforce, CEO Stijn Bijnens said during a presentation to investors on Friday.
It will also look to reduce its external workforce costs by 25 million euros by 2028, as part of a broader 180 million euro efficiency program driven mainly by workforce savings.
Dividend cut and share price reaction
Shares in Proximus fell around 20% by 0830 GMT, after the company said it would propose a dividend of 0.30 euro per share, compared to last year's payout of 0.60 euro per share, as it works to keep debt levels under control.
Analyst and broker commentary
Brokerage NewStreetResearch said the dividend cut was the main takeaway from the earnings release, adding it struggled to see the logic for the cut given Proximus' otherwise in-line guidance.
Infrastructure investment plans and fiber rollout targets
Proximus is betting that the short-term pain will restore its financial firepower as it races to build out infrastructure across Belgium.
The company said it planned to spend up to 1.25 billion euros on infrastructure, while increasing dividends back to 0.50 euro per share by 2028.
Fiber coverage progress and partnership reach
Proximus currently connects 42% of Belgian homes with fiber, targeting 60% by 2035, with a further 20% reachable through third-party partnerships including Orange.
Earnings performance and guidance
A strong performance in its home market drove a 15.5% rise in the group's earnings before interest, taxes, depreciation and amortisation (EBITDA) to 2.3 billion euros ($2.7 billion), which beat analysts' average estimate of 2.1 billion euros in a company-compiled consensus.
2026 domestic expectations and international profit outlook
Proximus expects its core domestic business to hold steady in 2026, while its international unit should generate between 100 million and 130 million euros in operating profit, it said.
Currency reference
($1 = 0.8470 euro)
(Reporting by Leo Marchandon in Gdansk; editing by Milla Nissi-Prussak and Matt Scuffham)
