TomTom is cutting 200 jobs as it reorganises into three divisions: Automated Driving, Location Intelligence and Navigation. Emerce reports that the company announced the changes alongside third-quarter figures in which group revenue fell but the operating margin beat expectations.
What happened
According to Emerce, TomTom has announced organisational changes intended to make the company more focused, faster and more scalable. The business has been regrouped into three divisions. Automated Driving covers the technology behind vehicle automation. Location Intelligence focuses on location data and the insights customers can draw from it. Navigation remains the core business.
TomTom says it will remove layers of management and move decision-making closer to the people doing the work. The company hopes this will help it respond more quickly to customer needs and speed up innovation. Emerce reports that 200 positions will disappear as part of the restructuring. The source does not say which countries, offices or teams will be affected.
Chief executive Mike Schoofs sees significant growth opportunities in automated driving and location intelligence, partly thanks to artificial intelligence. In comments reported by Emerce, translated from Dutch, he said: “In automated driving, AI helps us innovate faster and support higher levels of vehicle automation. In location intelligence, AI makes it easier for customers to access location data and draw insights from it.”
Navigation remains what Emerce calls the backbone of TomTom, and it is the activity that generates most of the company’s revenue.
TomTom also published its third-quarter results. Chief financial officer Taco Titulaer said, in Emerce’s report: “Revenue for the third quarter was in line with our expectations, while the operating margin came in higher than expected. This reflects our strong cost control.” He added that the company is adjusting its outlook for the full 2026 financial year by narrowing its revenue forecast range and raising its operating margin expectation.
The figures Emerce reports, compared with the third quarter of 2025, are:
- Group revenue: down 6 percent to €129 million (Q3 2025: €137 million)
- Location Technology revenue: down 3 percent to €115 million (Q3 2025: €118 million)
- Automotive operational revenue: down 19 percent to €68 million (Q3 2025: €85 million)
- Operating result: €6 million, an operating margin of 5 percent (Q3 2025: €8 million and 6 percent)
Why it matters if you live in the Netherlands
TomTom is one of the best-known Dutch technology companies, and many internationals work in the country’s tech sector. If you work at TomTom, or are considering a role there, this is the part of the news that matters most. Emerce confirms that 200 positions are going but gives no breakdown by location or job type. Staff should look to the company’s internal communications for details of who is affected and how the process will run.
The restructuring also says something about where the company is heading. Removing management layers and organising around three clear divisions points to a flatter organisation. Anyone applying to TomTom in the coming months may find that hiring, where it continues, concentrates on automated driving and location intelligence, the two areas the chief executive singled out for growth. The source does not say whether TomTom will create new roles in those divisions, so job seekers should treat that as a direction of travel rather than a promise.
For consumers and drivers, the source does not describe any change to TomTom’s navigation products or services. Emerce stresses that navigation remains the backbone of the business and its largest source of revenue, which suggests it is not being sidelined. TomTom’s technology also appears in many cars through its automotive work. That makes the 19 percent fall in automotive operational revenue worth noting, although Emerce does not explain the reasons behind it.
For investors in Dutch companies, the picture is mixed. Revenue is shrinking across every segment Emerce lists, but management says cost control has lifted the margin above expectations and it has raised its margin outlook for the year.
What to watch next
The first thing to watch is how the 200 job cuts are put into practice. Emerce does not give a timeline, a geographic breakdown or details of any consultation process. In the Netherlands, collective redundancies normally involve the works council and, depending on the numbers, notification to the employee insurance agency UWV. Further information may follow from TomTom or from employee representatives.
The second is whether the new structure delivers the growth Schoofs expects. He has tied the company’s prospects closely to AI in automated driving and location intelligence. The next quarterly results should show whether those divisions start to offset the decline in revenue.
The third is the full-year outcome. Titulaer said TomTom has narrowed its revenue forecast range for 2026 and raised its operating margin expectation. Emerce does not give the updated figures, so the year-end results will show how close the company comes to its revised targets.
Finally, the automotive business deserves attention. A 19 percent drop in operational revenue in a single quarter is significant for a company that wants to grow in automated driving. How TomTom explains and addresses that decline will matter for its strategy and for the people working in that part of the business.
Source: Emerce
Sources
- Emerce: 200 banen weg bij TomTom, accessed 15 October 2026
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