GPS Maker TomTom to Cut 300 Jobs as It Embraces AI

TomTom, the Dutch maker of GPS devices and apps, announced Monday (June 30) that it is cutting 300 jobs as it increasingly incorporates artificial intelligence (AI) into its business.

The company said it will accelerate the use of AI for the development and improvement of its products. TomTom said it has updated its mapping technology and made its software easier to use and more flexible.

TomTom CEO Harold Goddijn said the changes will enable the company to bring products to market faster and improve the customer experience.

The changes will mainly affect employees who work on its apps, plus sales and support staff.

In 2023, TomTom stopped directly selling portable GPS devices in the U.S., according to Autoevolution. Personal navigation devices (PNDs) have seen a decline in use due to the rising popularity of free apps such as Google Maps, Apple Maps and Waze.

Not only were GPS devices not free, but they were also difficult to update. Drivers had to physically connect the device to a PC to download updated maps and application software, according to the report.

TomTom has pivoted to providing mobile navigation apps, such as TomTom GO Navigation and AmiGO, and licensing location-based services, traffic data and maps to automakers and tech companies.

For example, its maps and traffic data are powering location-based services across Microsoft’s applications including Microsoft 365, Power BI, Bing and Azure Maps. TomTom is a Microsoft Azure customer as well.

However, it still sells GPS hardware in Europe and other global markets.

Globally, TomTom has pivoted to selling in-dash navigation systems and accessory devices.

Other companies that have eliminated or said they are planning to cut jobs due to AI include Salesforce, which reduced headcount by 1,000 while adding AI salespeople; Klarna, whose CEO said AI helped drive a 40% job reduction; Amazon, whose CEO said he sees needing a smaller workforce in the next few years; and Crowdstrike, which cut 500 jobs as it automates with AI.

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