TomTom reported a 6% decline in third-quarter revenue and said it will cut approximately 200 jobs as part of a reorganization aimed at sharpening its focus on automated driving and enterprise location intelligence.
Group revenue fell to €129 million ($141 million) in the three months ended Sept. 30 from €137 million ($150 million) a year earlier, the Dutch mapping and navigation company said last week. Location Technology revenue, its core business, decreased 3% to €115 million ($126 million). Automotive operational revenue, a key measure of sales to carmakers, dropped sharply by 19% to €68 million ($74 million) from €85 million ($93 million), highlighting continued weakness in that market.
Navigation remains the backbone of TomTom’s business and the source of most of its revenue, Chief Executive Mike Schoofs said. The company sees stronger growth opportunities in automated driving, where artificial intelligence is accelerating development of higher levels of vehicle automation, and in location intelligence for enterprises, where AI is making it easier for customers to access and analyze location data.
TomTom reorganized around three divisions — Automated Driving, Location Intelligence and Navigation — and said the changes will reduce management layers to speed decision-making. The moves will affect about 200 roles globally, or roughly 6% of its roughly 3,300-employee workforce. Schoofs said the company is committed to supporting affected employees. The restructuring is expected to generate annualized savings and includes a one-time charge in the fourth quarter.
Operating profit was €6 million ($6.6 million), for a 5% margin, compared with €8 million ($8.7 million) and a 6% margin a year earlier. Chief Financial Officer Taco Titulaer said the company narrowed its full-year 2026 revenue guidance while raising its operating-margin outlook, citing cost discipline and lower expected salary costs from the realignment. TomTom reiterated expectations of Location Technology revenue growth in 2027.
In other TomTom news:
- The company partnered with AI automated tech company DeepRoute.ai for joint technical work on automated driving. The two companies have integrated TomTom’s location data into DeepRoute.ai’s automated driving stack.
