Chief Executive Harold Goddijn mentioned larger ranges of automation would construct higher, broader maps enabling it to handle a wider market.
TomTom will slash a whole bunch of jobs as a consequence of 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 world workforce.
“Regrettably, this will have an intended impact on approximately 500 employees in our Maps unit,” the corporate mentioned in an announcement. “The full assessment of the financial implications of the reset of the Maps unit is ongoing.”
ING analyst Marc Hesselink estimated that the cuts would hit comparatively lower-paid staff, including that financial savings and restructuring expenses for the corporate ought to stability out round 30 million euros ($32 million) every.
“Over recent years TomTom has been working towards the holy grail of a fully automated map-making process,” Hesselink mentioned in a analysis word, including that an funding drive launched this yr seems to have been profitable.
Chief Executive Harold Goddijn mentioned larger ranges of automation would construct higher, broader maps enabling it to handle a wider market throughout its carmaker and tech clients.
TomTom shares rose barely in Amsterdam throughout morning commerce, however the inventory has misplaced greater than 1 / 4 of its worth because the begin of the coronavirus pandemic.
The firm, whose shoppers vary from Volkswagen and Renault to and Microsoft, has been hit by pandemic-caused provide chain shortages which pressured 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 instant results from Russia’s battle in Ukraine as some factories belonging to carmakers and suppliers within the nation remained in operation.
TomTom mentioned it might present an replace because it pronounces its quarterly monetary outcomes on July 15.
($1 = 0.9332 euros)
(Reporting by Sarah Morland; Editing by Christopher Cushing, Kenneth Maxwell and Emelia Sithole-Matarise)
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