By Huldah Shado
Dutch navigation technology company TomTom has announced plans to cut approximately 300 jobs; about 10% of its global workforce, as it accelerates its transition towards artificial intelligence-driven operations.
The company disclosed the move on Monday as part of a broader organizational realignment aimed at reducing financial losses and adapting to the growing role of AI in its business model.
In a statement, TomTom said the restructuring will primarily affect roles within the application layer, as well as sales and support functions.
The company noted that these changes are necessary to better align with its AI-focused strategy and streamline operations.
Once a pioneer in digital navigation, the Amsterdam-based firm has struggled in recent years with declining demand for standalone navigation devices, as in-built vehicle systems and smartphone apps have gained dominance.
TomTom also revised its sales forecast downward, projecting a drop from €574 million ($674 million) in 2024 to between €505 million and €565 million this year.
With the layoffs and restructuring, the company aims to enhance efficiency, boost innovation, and stay competitive in a fast-evolving technological landscape.
