Dutch navigation pioneer TomTom announced it will lay off 300 employees — about 10% of its global workforce — as part of a major restructuring to align with its new artificial intelligence strategy.
In a statement released Monday, the Amsterdam-based company said the job cuts will mainly impact roles in the application layer, as well as in sales and support functions. TomTom currently employs around 3,600 people worldwide.
“We are realigning our organisation as we embrace artificial intelligence,” the company stated, adding that the move is aimed at boosting long-term competitiveness after years of declining demand for standalone navigation devices.
Once a market leader in GPS navigation, TomTom has struggled to maintain relevance as smartphones and in-car infotainment systems replaced traditional GPS units. Despite providing mapping services to car manufacturers and tech platforms, the company has seen financial pressure mount.
Sales Outlook Slips
TomTom now forecasts 2025 sales between €505M and €565M, a dip from the €574M recorded in 2024. The firm’s CEO Harold Goddijn acknowledged in April that broader geopolitical tensions and economic uncertainty were also contributing to a less predictable short-term outlook.
Still, Goddijn expressed confidence in the company’s long-term future, betting on AI-driven solutions to transform digital mapping, geolocation services, and driver assistance technologies.
Strategic Pivot
The layoffs follow similar moves across the tech and mobility sectors, where companies are aggressively pivoting toward AI-driven efficiencies. TomTom’s transition suggests a deeper focus on automated map creation, smart mobility systems, and potentially AI-based navigation services for autonomous vehicles.
The restructuring underscores the growing pressure on legacy tech firms to rapidly evolve or risk obsolescence in an AI-first economy.
Related News