TomTom is recalculating and cutting approximately 200 jobs worldwide as it reorganises its operations and targets €21 million in annual savings.
The company plans to reduce management layers and organise its business into divisions for Automated Driving, Location Intelligence and Navigation. Apparently, even a mapping specialist occasionally decides its organisation needs fewer junctions.
TomTom chief executive Mike Schoofs presented the changes alongside familiar promises about the opportunities waiting around the next technological corner.
“We see significant growth opportunities in automated driving and location intelligence, driven by AI,” Schoofs said.
The company has been investing in its Orbis mapping platform while developing partnerships with Microsoft on generative AI and Mitsubishi Electric on automated driving. It previously cut 300 jobs in 2025 while reorganising around its product strategy and embracing AI.
The latest changes will produce an estimated €15 million restructuring charge in the fourth quarter, putting an immediate price on the promised savings. TomTom nevertheless raised its full-year operating margin forecast to approximately four per cent from three per cent, including that charge.
The company attributed the improvement partly to stronger performance during the year and lower salary costs expected in the fourth quarter. Investors get an improved margin forecast, while affected employees get the opportunity to update their CVs
Its revenue outlook became less cheerful, narrowing to between €505 million and €530 million from the previous €495 million to €555 million range. That lowers the midpoint to €517.5 million, despite raising the bottom end.
Third-quarter revenue reached €129 million, missing the €131 million analyst consensus, while operating profit doubled expectations at €6 million. Operating expenses came in at €111 million, below the €116 million forecast.
The company employs about 3,300 people globally, so the proposed cuts would represent roughly six per cent of its workforce. It has yet to disclose where the jobs will disappear.
