TomTom, the Netherlands-based navigation and digital mapping company, will reduce around 10 percent of its global jobs, as it steps up automation in mapmaking capability.
“Regrettably, this will have an intended impact on approximately 500 employees in our Maps unit,” TomTom said in a statement. “The full assessment of the financial implications of the reset of the Maps unit is ongoing.”
TomTom Group’s first quarter revenue decreased 2 percent to €128 million. TomTom Group’s operating expenditure during the first quarter was €129 million. TomTom did not reveal the anticipate reduction in its expenditure after the job reduction.
TomTom CFO Taco Titulaer said its gross margin improvements were offset by a year-on-year increase in operating expenses.
“We do expect that our increased expenses, which center around investments in our application layer and the further automation of our mapmaking platform, will lead to lower spend levels from 2023 onwards.”