Altice’s AI overhaul trims 1,000 Portuguese telecom jobs, unsettling expats

Portugal’s biggest phone provider is trimming nearly 1,000 jobs as it races to automate more of its network. While the headlines focus on Altice Portugal’s balance-sheet, the story is equally about how AI is reshaping Portugal’s labour market, what protections workers still have, and whether one of the country’s most visible brands could soon change hands.

Why the news resonates beyond corporate corridors

For foreigners who have chosen Portugal for its relative economic calm, the sudden confirmation of mass layoffs at Altice, the parent company of MEO, is a reminder that the country is not immune to the same automation pressures felt elsewhere. Tech-savvy newcomers often seek roles in Lisbon’s fast-growing digital sector, yet the telecom giant’s decision shows there is also growing emphasis on cost discipline, debt reduction and corporate streamlining. Expat professionals considering a switch to the Portuguese workforce should note that even established employers are re-evaluating headcount as generative AI reduces back-office staffing needs.

Automation meets austerity: Inside Altice’s overhaul

The company quietly launched a voluntary severance scheme in early summer, and union officials confirm that about 800 employees accepted exit packages in July, on top of roughly 200 departures earlier this year. Insiders say the restructuring covers customer-service call centres, network maintenance crews and some finance functions—areas where management believes new AI-powered diagnostic tools and self-service apps can absorb routine tasks. Although Altice declined on-the-record comment, executives have repeatedly signalled a dual objective: slashing operating costs while making the group’s Portuguese arm more appealing to potential investors. With net debt hovering around €60 B at group level, analysts expect further divestments or joint-venture deals once the internal reshuffle is complete.

Union alarm bells and Portuguese labour safeguards

Jorge Félix, president of the main Altice workers’ union, argues that the company is leveraging the buzz around artificial intelligence to push through an old-fashioned round of cost cuts. Under Portuguese law, large redundancies trigger mandatory negotiation with unions and, in many cases, state-funded retraining. Still, severance averages roughly one month’s salary per year of service, lower than some northern-European standards. The Ministry of Labour has not yet intervened, but pressure is mounting: consumer-rights groups worry a diminished workforce could erode service quality just as households rely on MEO for broadband, mobile, and streaming. Foreign residents, who often juggle remote work across multiple time-zones, may be the first to feel any slippage in network reliability or call-centre responsiveness.

Could Portugal’s telecom crown jewel be on the auction block?

Speculation about a sale has swirled ever since Altice purchased what was then Portugal Telecom back in 2015. Last August, group CFO Malo Corbin told investors that a full sell-off was off the table, yet he also admitted that select Portuguese assets—especially its fibre network—could attract outside capital. Industry watchers see several scenarios: an infrastructure fund might buy into the wholesale fibre grid; a North-American telecom operator could partner on 5G rollout; or a Middle-East sovereign fund could acquire a minority stake to secure long-term cashflow. Any of these moves would require regulatory clearance from ANACOM, Portugal’s communications watchdog, as well as EU competition authorities. For expat households, a change in ownership could eventually alter pricing, bundle offers, or even the range of English-language customer-support options.

Outlook: Service continuity, competitive dynamics, and what to watch

In the short term, day-to-day users of MEO’s mobile and fibre plans are unlikely to notice a sudden difference; network upgrades and outages are still governed by strict service-level mandates. Over the medium term, however, fewer human technicians and call-centre agents could lengthen response times during peak tourist months when data consumption spikes. The upside is that targeted AI investments—predictive maintenance, automatic routing, and customer chat bots—might limit visible disruptions. For job-seekers, the lesson is clear: Portuguese employers now value data-science, cloud-management, and cyber-security skill sets more than legacy telecom experience. The next pivotal date is Altice’s autumn earnings call, when management is expected to present a clearer roadmap on debt reduction and capital spending. Until then, both investors and Portugal’s sizable expatriate community will be monitoring whether the company’s AI gambit can deliver leaner operations without undercutting the quality of service that drew so many digital nomads and remote workers to the country in the first place.