Dutch navigation technology company TomTom plans to cut around 200 jobs, equivalent to approximately 6% of its global workforce, as part of a restructuring aimed at improving profitability and simplifying its management structure.
The Amsterdam-based company announced the planned reductions in its third-quarter update on Thursday, saying the changes would make the business “more focused, faster, and more scalable”. The layoffs are expected to be completed by the end of the year, although TomTom has not specified which locations or departments will be affected.
TomTom employs around 3,300 people worldwide, with more than a third of its workforce based in Western Europe. The company said it would reduce the number of management layers and bring decision-making closer to operational teams.
The restructuring is expected to cost €15 million in the fourth quarter but generate annual savings of €21 million. CEO Mike Schoofs said the changes would help the company respond more quickly to customer needs and accelerate innovation, adding that TomTom would support employees affected by the cuts.
Revenue forecast lowered
TomTom expects its 2026 revenue to fall short of last year’s €555 million, with the company projecting a decline of between €25 million and €50 million. Revenue for the first three quarters reached €392.7 million, down 7% from €423.5 million in the same period of 2025.
Third-quarter revenue fell by €8 million year on year to less than €129 million. Around half of the decline came from consumer sales, while the automotive sector accounted for approximately a quarter, with the remainder coming from enterprise customers.
Despite the revenue downturn, TomTom reported a net profit of around €5 million for the July-to-September period, compared with €9 million in the third quarter of 2025. Its cumulative profit for the first three quarters of 2026 stood at €26 million, against a net loss of €11.5 million in the corresponding period last year.
The company now expects to achieve an operating margin of around 4%, compared with its previous forecast of 3%. Chief financial officer Taco Titulaer said the outlook reflected stronger performance so far this year and lower salary costs in the fourth quarter following the restructuring. Excluding the one-off restructuring charge, the operating margin is expected to reach approximately 7%.
Focus on AI and automated driving
TomTom has reorganised its operations into three divisions: Automated Driving, Location Intelligence and Navigation. The company said navigation would remain central to its business, while automated driving and location intelligence offered opportunities for growth driven by artificial intelligence.
Schoofs said AI was helping TomTom develop technology more quickly to support higher levels of vehicle automation.
The latest job cuts follow a period of workforce expansion and contraction at the company, which employed more than 4,500 people at its peak in 2019. The restructuring is intended to reduce costs as TomTom adjusts to weaker revenue and seeks to strengthen its financial performance.
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