Map maker TomTom to cut 10% of its workforce

According to foreign media reports, Dutch navigation and digital mapping company TomTom said on June 1 that it will cut hundreds of jobs around the world as it makes progress in automated mapping, adding that this time The layoffs represent about a tenth of its global workforce.

"Unfortunately, this is expected to impact approximately 500 employees in our mapping division. We are currently fully evaluating the financial implications of restructuring the mapping division," the company said in a statement.

ING analyst Marc Hesselink estimates the layoffs will hit TomTom's relatively underpaid staff, adding that the company's savings from job cuts and restructuring costs (30 million euros each) should be able to offset.

"TomTom has been working on automating map production in recent years," Hesselink said in a research note, adding that an investment program the company launched this year appears to have been successful.

TomTom chief executive Harold Goddijn said a higher level of automated mapping capabilities would help build better and broader maps, allowing the company to serve more carmakers and tech businesses.

Image credit: TomTom

TomTom's customers, ranging from Volkswagen and Renault to Uber and Microsoft, have been hit by chronic supply chain shortages that have forced global automakers to cutproduction.In April, TomTom reiterated its cash flow and sales forecast, when it said the immediate impact of the situation in Russia and Ukraine on the company was limited because some automakers and suppliers still have factories in Ukraine operating.

TomTom shares in Amsterdam were up slightly in early trade on June 1, but have lost more than a quarter of their value since the coronavirus pandemic.TomTom said it will provide an update when it reports quarterly earnings on July 15.

TomTom is an independent navigation solution provider that can provide global navigation electronic maps. It was established in 1991. At first, it focused on providing users with navigation equipment and geographic location information services. Later, TomTom acquired Tele Atlas and focused on electronic map services. One of the earliest providers of navigation electronic maps in the world.Today, TomTom not only provides navigation solutions for drivers, but also continuously produces and improves map data.