TomTom to Lay Off 300 Employees Amid Strategic Shift Toward AI
Dutch location technology company TomTom has announced plans to cut 300 jobs as part of a strategic realignment aimed at embracing artificial intelligence (AI). The move supports the company’s pivot to a more product-led business model centred around AI-driven innovations.
AI Adoption Sparks Organisational Restructuring
In a statement released on Monday, TomTom said the layoffs will impact teams working on the application layer, as well as sales and support functions. The decision reflects the company’s effort to streamline operations and shift resources toward areas that align with AI integration and long-term product development.
“This realignment is necessary to ensure we remain at the forefront of location technology, powered increasingly by artificial intelligence,” the company said.
Focus on Product-Led Strategy and Technology Innovation
The job cuts are part of TomTom’s ongoing transition toward a product-led strategy, where automation, AI, and software intelligence will play a greater role in product offerings. This includes more efficient mapping technologies, smart navigation systems, and enterprise solutions powered by machine learning and predictive data analysis.
The move positions TomTom to better compete in a rapidly evolving tech landscape dominated by AI-powered services in automotive, mobility, and geospatial intelligence.
Impacted Units: Application Layer, Sales, and Support
According to TomTom, the layoffs will mainly affect:
- Teams working on the application layer of its software stack
- Employees in sales and support roles
The company did not specify if the restructuring would impact operations in specific regions, but it emphasised that the goal is to optimise its workforce for future-focused innovation.
TomTom’s AI Push Follows Industry Trends
TomTom’s announcement follows a broader trend of AI integration across the tech industry, where companies are:
- Reducing reliance on manual or legacy systems
- Automating customer support and sales pipelines
- Building smarter, AI-driven applications for consumers and businesses
By streamlining roles and increasing AI capacity, TomTom aims to strengthen its position as a leading provider of location-based services and mapping technologies.
Key Takeaways
- TomTom will cut 300 jobs as it shifts to a product-led strategy focused on AI
- Affected roles include those in the application layer, sales, and support teams
- The company is investing in AI-powered location technologies to drive growth
- The move is part of a wider industry trend toward automation and digital transformation
