TLDRs;
Contents
- TomTom is cutting 300 jobs, or 10% of its workforce, as part of a shift toward AI-driven operations.
- The company expects a revenue drop in 2025 amid declining demand for standalone navigation devices.
- Affected roles span development, sales, and support, reflecting the automation of routine tasks.
- The restructuring aligns with a broader industry trend of using AI to cut costs and stay competitive.
Dutch navigation company TomTom is laying off 300 employees as part of a sweeping reorganization driven by artificial intelligence.
The job cuts, affecting roughly 10% of its global workforce, were confirmed on June 30, 2025, as the company pivots away from its legacy device-driven model to align with a data-centric, AI-powered future.
Roles in application development, sales, and support are among those being phased out. While the layoffs are framed as part of a modernization effort, they arrive at a time of shrinking demand for TomTom’s once-ubiquitous standalone navigation devices.
Revenue Projections Reflect a Company in Transition
The restructuring comes alongside a cautious revenue outlook. TomTom expects to generate between €505 million and €565 million in 2025, a decline from the €574 million posted in 2024. The dip reflects broader industry shifts, where smartphones and real-time traffic apps have cannibalized demand for dedicated GPS units.
CEO Harold Goddijn had already flagged turbulence earlier this year, attributing part of the uncertainty to global trade tensions. Despite that, he expressed confidence in the company’s long-term prospects, citing the strategic necessity of AI adoption.
TomTom’s pivot underscores how AI is disrupting the navigation space. No longer confined to providing static routes, AI-powered systems now analyze vast data streams, including real-time traffic, weather, and user behavior to deliver dynamic route optimization. In such an environment, traditional GPS hardware struggles to stay relevant.
The company’s restructuring echoes a broader trend where legacy tech firms are shedding jobs tied to outdated platforms while investing in emerging capabilities. A recent PwC report noted that more than half of IT leaders expect AI to eventually replace some employee roles, particularly those involving repetitive tasks.
Layoffs Part of Broader Industry Realignment Around AI
TomTom is not alone. Across sectors, firms are tightening belts and reshaping talent pools. DBS Group and Klarna have similarly cut thousands of roles while simultaneously investing in AI expertise.
However, the market has not rewarded TomTom’s restructuring just yet. The company has posted a negative net income of €9.4 million and a one-year stock return of minus 26.7%. These figures add urgency to the reorganization and heighten expectations for visible progress in AI initiatives.
While the layoffs represent a painful moment for the 300 affected employees, TomTom’s long-term vision hinges on data science, machine learning, and automation. The company is betting that by embracing AI now, it can stay relevant in a space where innovation is racing ahead and competition is no longer just about maps, but intelligent mobility.
