Proximus Faces Job Cuts and CEO Scrutiny Amidst Stock Plummet
proximus, a major European telecommunications company, is navigating turbulent waters. A meaningful workforce reduction and intense scrutiny of its CEO are dominating headlines, all while the company’s stock price continues a dramatic freefall.
Internal reports reveal a considerable decrease in full-time equivalents (FTEs) from 12,143 in 2019 to 10,358 in 2023 – a 14.7% drop. This decline, however, is not expected to end soon.
Significant Job Losses on the Horizon
Proximus management is currently analyzing potential job cuts, focusing on positions that will become vacant due to retirements between 2025 and 2027. The company is also factoring in anticipated employee departures. Internal projections suggest anywhere from 600 to 900 unfilled positions.
An anonymous source within the company, where the Belgian State holds a 53.51% stake, commented, “This is not at all the scenario of 2019.”
CEO Under Fire as Stock Price Tanks
Proximus CEO Guillaume Boutin, whose contract was renewed for six years in July 2024, is facing mounting criticism. His leadership has come under fire, particularly from the MR and NV-A political parties in November 2024, coinciding with a sharp decline in the company’s stock price. The stock, valued at €26 in February 2020, plummeted to €5 by december 2024.
Despite the market turmoil, the Board of directors issued a statement on July 26, 2024, explaining their decision to extend Boutin’s contract: “[… ] unanimously for a proactive extension of Mr. Boutin’s mandate. The extended collaboration with Mr. Boutin will ensure continuity and allow us to fully concentrate on the execution of the strategy he initiated.”
Though, this decision hasn’t silenced critics. The pressure has intensified to the point that Boutin has been called to testify before the House.
In a recent attempt to reassure investors, Boutin announced the formation of Proximus Global, a new entity integrating the international subsidiaries BICS, Telesign, and Route Mobile. This move aims to streamline operations and possibly boost shareholder confidence.
The situation at Proximus highlights the challenges faced by telecommunications companies in a rapidly evolving global market. The combination of job cuts, CEO scrutiny, and a plummeting stock price underscores the need for decisive action and a clear path forward for the company.
