Telenet to cut jobs and close several stores

Belgian telecoms operator Telenet has announced plans to reduce its workforce by about 10% and close six retail stores as part of what it describes as a strategic optimisation of its Belgian operations.

The restructuring will affect both headquarters staff and retail employees. In a statement, the company said that the move was part of a broader effort to sharpen its growth strategy and streamline its retail network.

Telenet said that the decision was "completely unrelated" to the recent announcement that Telenet plans to merge with Netherlands-based VodafoneZiggo, creating a new joint venture called Ziggo Group, which will be listed on the Amsterdam stock exchange.

In the agreement, Vodafone will have a 10% stake in Ziggo Group, while Telenet owner Liberty Global will own the remaining 90%. The deal has still yet to be approved by authorities.

"We lack scale in Europe," said Telenet chief executive John Porter. "In the US, there are three main telecoms companies. In Europe there are 80."

The company confirmed that six shops will shut their doors in the coming months - including three in Brussels bearing the name of Telenet's mobile subsidiary, Base. The affected Brussels stores are those at Louise, La Chasse (Etterbeek) and Westland Shopping (Anderlecht).

Base stores in Kiel and Merksem and a Telenet store in Schoten will also close.

Telenet said it aimed to focus more strongly on digital services and selected flagship stores, reflecting changing customer behaviour and increased online interactions.

"People are very shocked by this and didn't see it coming," said BBTK union representative Bjorn Beukeleers. "Many employees are also not happy about it, and we're already seeing a huge willingness to take action."

No forced redundancies are planned and the telecoms group is launching a voluntary departure programme.

"Eligible employees who choose to leave the company voluntarily will be able to benefit from a personalised support package," the company said.

Porter said that the process would be handled carefully. The reduction of employees will be carried out “with the utmost respect for our employees and partners”, he added.

The company has not yet specified how many jobs will be affected in Brussels specifically, but most of the affected layoffs will be consultants.

Telenet's aim is to reduce its workforce of 3,530 employees by 10% by 2028. This number includes 375 consultants, some of whom may be converted into full-time employees.

Social dialogue with employee representatives and Telenet is expected to begin in the coming weeks.