TomTom plans to cut 10% of its employees due to stiff competition against smartphones

TomTom plans to cut 10% of its employees due to stiff competition against smartphones
Although it’s not a surprising result, especially when the trends show more people adopting GPS services on their smartphones, veteran GPS manufacturer TomTom has announced its plans on moving forward with cutting 10-percent of its current employees. Obviously, the transparent reality of GPS being included on many phones has caused such heartache in the past for most dedicated GPS makers.

Actually, the move will aid the company to reduce costs as it attempts to forge ahead in a sea that’s bumpy and wavy – seeing that they’re encountering difficulty in keeping their hardware sale afloat. Furthermore, with the layoffs in place, TomTom will be modifying its research-and-development structure, in order reduce the turn time in getting a specific product to market, plus, developing newer products much more quickly.

TomTom CEO Harold Goddijn said, “The new structure brings more transparency and accountability; makes it easier to make innovation choices and will reduce our time to market.”

Already, we’ve seen TomTom moving outside its traditional mold by developing offline maps applications, like what’s available on the iPhone, but despite those new ventures, they continue to find roadblocks as they compete with free alternatives like Google Maps. Needless to say, it’ll be interesting to see what TomTom brings to market in the future to help keep it in good light against the competition.

via Electronista



1. gallitoking

Posts: 4721; Member since: May 17, 2011

The will follow Hollywood Video or renewe like Blockbuster.....

2. HTCiscool

Posts: 449; Member since: Jul 16, 2011

Well, I didn't even know TomTom was still in existence, thought it went bankrupt years ago.

3. Owlet

Posts: 450; Member since: Feb 21, 2011

Who buys GPS anymore? You have free navigation in your phone. The main thing, maps and businesses (POI) are updated A LOT faster.

4. c.hack

Posts: 614; Member since: Dec 09, 2009

People got tired of price gouging for map updates, stale POIs and a UI that is 10 years old. TomTom hasn't developed anything new in a long long time.

5. Forsaken77

Posts: 553; Member since: Jun 09, 2011

I work for a large cable co. and drive to multiple houses each day. I use a Garmin gps and prefer it 100x's over my phone. First off, I drive a commercial vehicle and, here in NY, cannot drive on parkways with the van. The Garmin calculates a route based on what vehicle it's set for, truck or car. The interface is much better and less convoluted than Google maps. It's quicker to input the address and much easier to view upcoming turns, merges and so on. But most people don't use a gps to the extent I do. Most only need it in rare instances when traveling or lost. In those cases the phone is just perfect, providing you have a big enough screen and a windshield mount with car charger. The smartphone boom has made it drastically difficult for gps companies to survive. Most people don't care enough about the differences to justify a separate purchase of a dedicated nav unit. I only hope Garmin doesn't go under because they have superior ui's and the routing algorithms they use are spot on to get me to the street I need in the most optimal route.

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