Location technology company TomTom will cut around 300 jobs in a bid for greater artificial intelligence integration, as it works to recover from an earnings slump.
The cuts will largely affect employees in its application layer, sales, and support segments, the company said. TomTom offers built-in navigation systems for automakers like Toyota, Volkswagen, and Mazda, as well as its own portable GPS devices.
“With a modernized technology stack, we are becoming a truly product-led company, providing our customers with integration-friendly, easily customisable, modular products,” said TomTom CEO Harold Goddijn.
“As a consequence, we are making organisational changes that will affect certain roles in the units working on our application layer, and in our sales and support functions, resulting in a reduction of 300 roles. We are committed to providing impacted colleagues with the support they need,” the company wrote.
The company will provide additional updates on this strategy in its second quarter results, due on 15 July.
TomTom could end sales of its GPS devices in the United States and Canada in January 2024, recommending customers instead download its TomTom GO Navigation smartphone app.
The company’s location technology revenue rose by 2% year-over-year in 2025’s first quarter, while consumer revenue dropped by 8%. Its full year 2025 forecast projects a decline in group revenue to EU€505-565 million, down from 2024’s €574 million.
Its net result recovered to EU€3 million that quarter, up from the previous year’s loss of €4.9 million. TomTom’s free cash flow increased by €6.4 million, but still posted an outflow of €3 million.
TomTom’s (AMS: TOM2) share price closed at EU€4.95, below its previous close at €5.14. Its market capitalisation is €630.6 million.
