Developer and creator of location technology and consumer electronics TomTom NV (AMS: TOM2) is set to trim hundreds of jobs following improvements it has made in automating its mapmaking operations. The company says the lay-offs will amount to 10% of its global workforce.
“Regrettably, this will have an intended impact on approximately 500 employees in our Maps unit. The full assessment of the financial implications of the reset of the Maps unit is ongoing,” said TomTom.
The company’s chief executive officer, Harold Goddijn, said increased levels of automation would build better, broader maps enabling the company to address a wider market across its carmaker and tech customers.
The company provides its services to big names like Uber Technologies Inc. (UBER), Microsoft Corp. (MSFT) and Renault SA (EPA: RENA). The global computer chip shortage has been affecting vehicle manufacturers and this has trickled down to companies like TomTom that provide their services to the auto industry.
Since the start of the pandemic the company’s stock has lost around 25% of its value. Back in April TomTom reaffirmed its cash and sales forecasts further claiming it has experienced minimum effects from war between Russia and Ukraine.