TomTom, the Dutch digital mapping and navigation technology company, announced on June 30, 2025, that it will be cutting approximately 300 jobs, accounting for nearly 10% of its global workforce. The decision comes as part of a significant restructuring plan aimed at realigning the company’s strategy toward artificial intelligence (AI)-driven, modular products and services.
The layoffs will primarily affect employees working in the application layer, sales, and customer-support departments. According to the company, the move is intended to streamline operations, improve cost efficiency, and support TomTom's transition into a more product-led organization.
TomTom CEO Harold Goddijn stated that the shift will allow the company to deliver solutions that are easier and faster for clients to implement, while accelerating value creation. He emphasized the company’s goal to modernize its technology stack and reduce time-to-market for new offerings.
A central component of TomTom’s new direction is the launch of its Orbis Maps platform, which promises to provide more detailed and frequently updated geographic data. The company believes that this innovation, supported by AI, will better meet the evolving needs of clients in industries such as automotive, logistics, and urban planning.
Despite these technological advancements, the restructuring comes with financial pressures. TomTom has forecast a decline in full-year revenue for 2025, expecting to earn between €505 million and €565 million, compared to €574 million in 2024. The job cuts are expected to help reduce costs and redirect resources toward high-impact areas of development.
In response to the announcement, TomTom shares showed a slight dip in trading, though market analysts suggest investors are adopting a wait-and-see approach ahead of the company’s second-quarter financial results, scheduled for release on July 15, 2025.
Employees impacted by the layoffs will receive severance packages and transition assistance. TomTom affirmed its commitment to supporting staff through the restructuring process.
The company’s strategic shift underscores the broader trend among technology firms to integrate AI into their core services while adapting to changing market demands. TomTom’s success in this new phase will largely depend on its ability to execute its transformation efficiently and maintain competitiveness in a rapidly evolving industry.