TomTom dismiss 10 percent of its staff and reorganize in an attempt to speed lwa nter to develop and products to market faster. The manufacturer has the burden of free competition on smartphones.
TomTom sees the sales of individual devices, so-called pnds, already a time of decline. The decrease seems mainly to come through the emergence of free navigation on mobiles, the demand for its products has fallen. Tentatively expecting TomTom also no improvement, so the company in October already announced to want to reorganize.
Wednesday, TomTom has the details from that previously proposed reorganisation announced. The company was forced to lay off 457 jobs, which represents about 10 percent of its total workforce. Half of the decrease will take place through redundancies in the Netherlands, according to TomTom. The other half must be through the natural course to happen.
TomTom saw this year, especially the sale of loose pnds to decline. In the past quarter were that there are in Europe three million, in comparison with 3.4 million last year. In North America, sold TomTom 2.1 million portable navigation systems, while in the same period last year, 2.9 million were. The revenue from the consumer market decreased in the third quarter by 23 percent to 225 million euros.
To turn the tide, the manufacturer’s research and development activities as otherwise described. This should ensure that TomTom is able to go faster to develop and invented products to market faster. To this end, the existing r&d activities spread across ten product groups: Maps, Traffic, Navigation, Automotive Systems, PNDs, Fleetservices, Fitness, Mobile, POIs and Speedcams.