TomTom, the Dutch location technology company, is leveraging artificial intelligence (AI) to drive a major organizational shift aimed at cost reduction and efficiency. As part of its transition to a product-led strategy, TomTom announced the elimination of 300 roles across its application layer, sales, and support functions.
The company said its adoption of AI and a modernized, scalable product development framework have allowed it to streamline operations and deliver more modular, integration-friendly solutions to customers. This evolution, centered on the recently launched Orbis Maps platform and modular software tools, reduces the need for extensive customization and support services.
CEO Harold Goddijn stated that AI-driven automation and the overhaul of its technology stack are enhancing user experience and speeding up customer implementation timelines. However, these advancements have also made some roles redundant.
TomTom reported Q1 2025 revenue of €140 million, a 1 percent year-on-year increase from €139 million in Q1 2024. Location Technology revenue rose slightly to €121 million from €119 million a year earlier.
In the Automotive segment, reported revenue declined by 4 percent to €80 million, but operational revenue grew 5 percent to €83 million, reflecting stronger adoption of TomTom’s products. Enterprise revenue grew significantly by 18 percent to €42 million, driven by increased demand for TomTom’s detailed maps and location-based solutions across sectors.
New customer wins in location analytics included Ionity, which is using TomTom’s traffic analytics for EV charger placement, and Climate X, which integrates TomTom APIs into climate risk analysis. The company also expanded in fleet management and mobility solutions, offering products like navigation SDKs for waste management and traffic insights to improve ETA accuracy.
In Automotive, TomTom continues to expand its market footprint by offering customizable, user-centric solutions. It also advanced its AI-driven 3D mapping technology to support automated driving and enhance in-vehicle experiences.
TomTom will provide further updates on its restructuring and AI initiatives when it reports Q2 2025 financial results on July 15.
InfotechLead.com News Desk
