TomTom to cut 200 jobs in reorganisation
The navigation and mapping company lowers the midpoint of its revenue forecast, but raises its margin forecast through cost savings.
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TomTom is to cut around 200 jobs as part of a reorganisation. The company expects a one-off charge of around €15 million as a result, while annual savings are expected to come to around €21 million.
The reorganisation is intended to divide TomTom into three business units: automated driving, location information and navigation. The company says management layers will be reduced. Chief executive Mike Schoofs told Reuters, according to the news agency, that the changes affect around 200 positions, without providing a country-by-country breakdown in the reporting consulted.
TomTom simultaneously lowered the midpoint of its revenue forecast for 2026. According to Reuters, the new range is €505 million to €530 million, compared with €495 million to €555 million previously. The lower end is therefore higher, but the upper end lower. The company thus became more cautious about revenue while expressing greater confidence in profitability.
Operating profit for the third quarter came to €6 million. That was higher than the €3 million analyst forecast compiled by the company. Revenue was €129 million, slightly below the €131 million consensus.
TomTom now expects an operating margin of around 4 per cent for 2026, compared with approximately 3 per cent previously. The margin forecast includes the announced reorganisation charge. Without that one-off charge, the margin would come to around 7 per cent, according to chief financial officer Taco Titulaer.
The figures illustrate a familiar tension in the navigation sector. TomTom is investing in maps, location data and applications for car manufacturers, while traditional consumer navigation is shrinking. In the second quarter, the company already reported that group revenue had fallen year on year, but that the margin had improved.
The reorganisation is intended to reduce costs and simplify the organisation. For employees, however, the measure means concretely that around 200 positions will disappear. The announcement does not state how many of these are in the Netherlands or over what timeframe the redundancies will be carried out.
TomTom has around 3,300 employees worldwide, according to the company information accompanying its half-year results. The impact of the reorganisation therefore represents a limited share of the total workforce, but could be greater in some regions if jobs are not distributed evenly across countries and business units.
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The financial figures and job losses are taken from a Reuters report and correspond with TomTom's official financial calendar and earlier quarterly information. The distribution of jobs across countries and functions is not known and has not been filled in.
- confirmed TomTom is cutting around 200 jobs. — Reuters reports the job losses and quotes chief executive Mike Schoofs. source
- confirmed The new revenue forecast for 2026 is €505 million to €530 million. — Mentioned in the Reuters report. source
- confirmed The reorganisation charge is around €15 million and the annual saving around €21 million. — Reported by Reuters. source
- confirmed TomTom had around 3,300 employees worldwide, according to company information. — TomTom gives this headcount in its official quarterly information. source
Editor's note
The reorganisation, the 200 positions, the revenue range, the margin target and the financial figures come from a Reuters report. TomTom confirms through its investor calendar that the third-quarter results were published on 15 October; a full primary press release was not separately available at the time of checking.Sources
- TomTom to cut 200 jobs, trims 2026 revenue outlook midpoint — Reuters via Investing.com
- Second quarter 2026 results — TomTom
- Quarterly results — TomTom
More on this in Dutch media
- NU.nl — „tomtom banenverlies”
- De Telegraaf — „tomtom banenverlies”
- Trouw — „tomtom banenverlies”