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Amsterdam’s navigation specialist Tom Tom to lay off 500 employees, says ‘richer’ maps coming soon


Amsterdam-based navigation technology specialist TomTom announced on Wednesday that it will lay off 500 employees in its map units as the company looks to reset the organisation to further improve its mapmaking technology. 

The layoff is equivalent to around 10 per cent of the company’s total global headcount. 

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“Higher levels of automation and the integration of a variety of digital sources will result in fresher and richer maps, with wider coverage,” said Harold Goddijn, CEO of TomTom. 

According to TomTom, the improvement in mapmaking technology will lead to material efficiency gains. 

Goddijn adds, “These better maps will improve our product offerings and allow us to address a broader market, both in the Automotive and Enterprise businesses.”

According to ING analyst Marc Hesselink, the cuts would affect lower-paid workers, adding that savings and restructuring charges for the company should balance out around €30M (approximately $32M) each.

“Over recent years TomTom has been working towards the holy grail of a fully automated map-making process,” Hesselink said in a research note, adding that an investment drive launched this year appears to have been successful,” says Hesselink. 

The company’s share has fallen around 19 per cent. 

In April, the Dutch technology company published its Q1 2022 results. According to the financial summary, TomTom’s group revenue decreased by 2 per cent to €128M compared to last year’s €131M. 

About TomTom

Founded in 1991 by Corinne Vigreux and Peter Frans Pauwels, TomTom is a digital mapping and routing company that focuses on car navigation. 

The company delivers better maps through a combination of its high-quality map database that is continuously updated through input from its extensive fleet of surveying vehicles and their large community of users. 

It regularly processes close to 2B map changes per month, which helps it maintain the freshest maps.

It’s estimated that 10% of the global road network changes every year. TomTom partners with logistics companies and on-demand industries to share the map editing process to provide real-road conditions.

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