TomTom slashes 10% of workforce

TomTom slashes 10% of workforce

TomTom will slash 10% of its workforce in reaction to the growing threat of navigation apps on smartphones.

The Dutch firm announced last quarter that its revenue had fallen 10%, mostly down to its satnavs facing competition from free or cheaper smartphone apps.

The company said 457 jobs would be cut, half of which would be through redundancies - and half of those would be in the Netherlands. The remaining cuts will be achieved through natural "attrition", the firm said.

TomTom will also reorganise its research and development in the hopes of accelerating the release of new products.

"The new structure brings more transparency and accountability; makes it easier to make innovation choices and will reduce our time to market," TomTom CEO Harold Goddijn said. "I am confident that our customers will start to see the benefits and a higher pace of product introductions as soon as 2012."

The changes will cost the firm US$18.6 million in the fourth quarter, but TomTom said it would still meet its planned cash savings of $66 million in 2012, announced after it posted the sales drop in October.

This article originally appeared at pcpro.co.uk

Source: Copyright © PC Pro, Dennis Publishing

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