Tomtom navigates 300 job cuts in AI-driven restructuring

Amsterdam-based digital mapping company Tomtom has announced it will eliminate 300 positions as part of a strategic realignment toward artificial intelligence integration. Employing around 3,700 people worldwide, including 1,200 in the Netherlands, the firm said less than half of the job losses will occur domestically. The cuts primarily target employees in application layer development, sales and customer support.

Faced with a declining demand for its standalone GPS devices as they were overtaken by smartphone apps, Tomtom shifted to creating digital maps. It now licenses this technology to carmakers and navigation service providers like Volkswagen, Renault and Apple. Nonetheless, business continues to dwindle. The company reported a 17-million-euro loss last year, with revenue projected to fall from 574 million euros in 2024 to 505-565 million in 2025.

In an attempt to turn the tide, Tomtom completely overhauled its mapmaking platform and invested in its application layer to deliver modular, reusable software solutions. “This shift to a modernized technology stack enhances the end-user experience and shortens implementation cycles for our customers, accelerating our time-to-value,” comments CEO Harold Goddijn. Tomtom expects AI integration will help the company scale operations more efficiently for product creation and delivery.