TomTom to Cut 200 Jobs Amid Revenue Decline and Strategic Reorganization
Amsterdam-based navigation firm TomTom will cut 200 jobs as part of a corporate reorganization intended to accelerate innovation and reduce management layers. The company announced the staff reductions alongside its third-quarter financial results, which showed a 5.8 percent decline in revenue to 129 million euros.
The restructuring, announced by newly appointed CEO Mike Schoofs, aims to make the organization faster and more scalable
by bringing decision-making closer to the execution level. As part of this transition, the company has reorganized its operations into three distinct divisions: Automated Driving, Location Intelligence, and Navigation.
Financial Performance and Market Shifts
TomTom’s latest interim trading update reveals a challenging fiscal period. Beyond the revenue dip, the company’s operating result, or EBIT, fell 28 percent year-on-year to 6 million euros, while net profit dropped 44 percent to 5.1 million euros. Shareholders faced a negative result per share of 0.19 euros, compared to 0.070 euros in the previous year. The group revenue contraction to 129 million euros compared to 137 million euros in the third quarter of 2025. Within these figures, Location Technology revenue fell 3 percent to 115 million euros, while Automotive operational revenue saw a 19 percent decline to 68 million euros.
Despite these declines, CFO Taco Titulaer noted that the company demonstrated strong cost control,
resulting in an operating margin that exceeded internal expectations. The company has adjusted its outlook for the full year 2026, narrowing its total revenue forecast to between 505 and 530 million euros, while raising its expected operating margin to approximately 4 percent. Excluding one-time restructuring costs, the CFO anticipates the margin could reach approximately 7 percent. This narrowed guidance replaces earlier projections of 495 to 555 million euros in total revenue. For the Location Technology division specifically, the expected contribution is now set between 450 and 470 million euros, shifting from the previous range of 435 to 485 million euros.
Strategic Focus on AI and Automation
The company is pinning future growth on the integration of artificial intelligence within its newly defined divisions. CEO Mike Schoofs highlighted that AI is expected to accelerate innovation in automated driving and simplify how clients extract insights from location data. In both markets, customers rely on accurate, continuously updated views of the physical world, which they integrate into their own products,
Schoofs added.
While the business pivots toward these newer technologies, management emphasized that the Navigation division remains the backbone of TomTom,
representing the primary source of the company’s total revenue. The company continues to maintain a net cash position of 239 million euros as it navigates this period of structural transition. Market analysts continue to monitor these developments, with some firms maintaining a Buy
rating as of October 15, 2026.