Dutch navigation firm TomTom announced on June 30, 2025, that it will cut around 10% of its workforce, or about 300 jobs.

The layoffs are part of a reorganization aimed at adopting AI.

Affected roles include application layer development, sales, and support functions. TomTom currently has about 3,600 employees worldwide.

The company has faced difficulties as dedicated navigation devices have declined in popularity.

It expects a revenue drop, forecasting €505 million (US$592.3 million) to €565 million (US$662.7 million) in sales for 2025, down from €574 million (US$673.2 million) in 2024.

In April, CEO Harold Goddijn cited trade tensions as a factor behind the uncertain short-term outlook but remained confident in TomTom’s long-term future.

🔗 Source: Agence France-Presse

🧠 Food for thought

1️⃣ TomTom’s restructuring follows broader tech industry pattern of AI-driven job cuts

TomTom’s decision to cut 10% of its workforce while “embracing AI” reflects a trend across industries where companies are reducing headcount while investing in artificial intelligence.

DBS Group announced similar plans to cut 4,000 temporary roles (approximately 10% of its temporary workforce) over three years while creating 1,000 new AI-related positions 1.

This trend is also seen in companies like Klarna, which eliminated 1,000+ jobs after implementing AI systems that could handle customer service tasks equivalent to 700 full-time employees 2.

The navigation company’s strategy reflects the economic pressures driving businesses toward AI adoption, with a PwC report indicating that 53% of IT leaders anticipate AI will replace some headcount 3.

TomTom’s workforce reduction demonstrates how established technology companies are reallocating resources from traditional operations to emerging technologies to remain competitive.

2️⃣ Navigation industry facing fundamental disruption requiring strategic pivots

TomTom’s financial struggles predate this latest announcement, with the company reporting a negative profit margin of -1.63% and a net income of -€9.4 million in recent financial reports 4.