Analysts predict more location companies will follow with AI-driven layoffs…
Dutch navigation specialist TomTom recently announced plans to eliminate 300 jobs—nearly 10 percent of its global workforce—as part of a strategic realignment aimed at accelerating its shift toward artificial intelligence (AI) and more product-focused development. The cuts, affecting staff in application-layer development, sales and support, reflect the company’s effort to modernize its mapping platform and deliver AI-enhanced offerings such as TomTom Orbis Maps.
TomTom CEO Harold Goddijn said, “With a modernized technology stack, we are becoming a truly product‑led company,” reinforcing a strategy to shorten implementation cycles and boost end-user experience through AI integration.
The layoffs will allow the company to reallocate resources to its AI-driven location and navigation technologies—an essential move given shrinking demand for standalone GPS devices in favor of smartphone-integrated mapping apps. The timing reflects a broader industry trend among digital-mapping providers and GPS-centric firms facing pressure from smartphone navigation services like Google Maps. According to Autoevolution, TomTom itself cited its “big bet on artificial intelligence” as a key driver behind job reductions. In parallel, competitor firms have similarly downsized to direct investment into machine-learning systems and cloud-based mapping platforms.
The trend highlights how automation and intelligent systems are reshaping location services, reducing demand for legacy development processes and traditional support staff.
The company, after taking significant losses in 2024, had an encouraging start to 2025 with growing revenues and strategic progress in the first quarter. However, TomTom forecasts revenue decline from €574 million in 2024 to between €505 million and €565 million in 2025, underscoring urgency in streamlining operations and reorienting toward scalable, AI-enhanced products.
NextBillion.ai and TomTom Partner
In other company news, TomTom has partnered with NextBillion.ai to provide mapping capabilities through its Orbis Maps platform for global clients. These include adding mapping capability for logistics, delivery, mobility and transportation sectors, the company said.
NextBillion.ai said Orbis Maps’ scalability and speed, which TomTom hopes will be an alternative to mapping solutions from Google $GOOG and Apple $AAPL, allows it to meet rising demand for tailored location services in expanding markets across North America, India, and Southeast Asia.
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