Navigation firm TomTom to cut jobs as it automates mapmaking

TomTom emblem and digital camera are seen on a automobile in Eindhoven, Netherlands, November 21, 2019. REUTERS/Eva Plevier/File Photograph

June 1 (Reuters) – TomTom (TOM2.AS) will slash a whole lot of jobs resulting from enhancements it has made in automating its mapmaking actions, the Dutch digital navigation firm mentioned on Wednesday, including that the cuts would quantity to round a tenth of its international workforce.

“Regrettably, this can have an supposed influence on roughly 500 staff in our Maps unit,” the corporate mentioned in a press release. “The complete evaluation of the monetary implications of the reset of the Maps unit is ongoing.”

ING analyst Marc Hesselink estimated that the cuts would hit comparatively lower-paid employees, including that financial savings and restructuring prices for the corporate ought to steadiness out round 30 million euros ($32 million) every.

“Over latest years TomTom has been working in direction of the holy grail of a totally automated map-making course of,” Hesselink mentioned in a analysis notice, including that an funding drive launched this yr seems to have been profitable.

Chief Government Harold Goddijn mentioned greater ranges of automation would construct higher, broader maps enabling it to deal with a wider market throughout its carmaker and tech prospects.

TomTom shares rose barely in Amsterdam throughout morning commerce, however the inventory has misplaced greater than 1 / 4 of its worth for the reason that begin of the coronavirus pandemic.

The corporate, whose purchasers vary from Volkswagen (VOWG_p.DE) and Renault (RENA.PA) to (UBER.N) and Microsoft (MSFT.O), has been hit by pandemic-caused provide chain shortages which compelled automakers across the globe to slash manufacturing.

It had reaffirmed its money and gross sales forecasts in April, when it mentioned it had seen restricted fast results from Russia’s conflict in Ukraine as some factories belonging to carmakers and suppliers within the nation remained in operation.

TomTom mentioned it will present an replace because it publicizes its quarterly monetary outcomes on July 15.

($1 = 0.9332 euros)

Reporting by Sarah Morland; Enhancing by Christopher Cushing, Kenneth Maxwell and Emelia Sithole-Matarise

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