Automated map making platform costs 500 jobs at TomTom

A TomTom satnav system. Photo: TomTom
A TomTom satnav system. Photo: TomTom

Dutch satnav maker TomTom is cutting 500 jobs following the introduction of new map making technology, the company said on Wednesday in a pre market announcement.

Tom Tom said it has invested in an automated map-making platform which has made around 10% of the company’s workforce redundant.

The move will result on ‘higher levels of automation and the integration of a variety of digital sources will result in fresher and richer maps, with wider coverage,’ Harold Goddijn, CEO of TomTom, said.

Goddijn said the the improved platform would open up new markets for the company and improve its competitive edge.

TomTom turnover went down by 2% to €128 million in the first quarter. The investments made in the map making technology increased the operational costs by 15% in the first three months to €129 million resulting in a €20 million loss.

The full assessment of the financial implications of the reset of the maps unit is ongoing, TomTom said.  A further update is expected when results for the second quarter of 2022 will be published.

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