Reuters (June 1, 2022): Navigation Firm TomTom has decided to cut jobs to expedite the Mapmaking Automation process, a news source has reported.
Since Reuters has announced that navigation firm TomTom car jobs will be slashed to make mapmaking automation super fast and flexible, it has become the only news rolling out everywhere.
The Dutch digital navigation company says “the cuts” would amount them around 10th of its total global workforce.
The company statement came out with the stance:
“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.”
What ING analyst Marc Hesselink says is also worth mentioning:
“Over recent years TomTom has been working towards the holy grail of a fully automated map-making process.”
He estimated that the TomTom car jobs slash will relatively affect the lower-waged workers. Moreover, savings and restructuring charges for the company would be balanced out by around $32 million each. He said in a research note that this year, an investment drive launch appears to have been successful.
Furthermore, Chief Executive Harold Goddjin shared his remarks:
Higher levels of automation would help in building broader and better maps, enabling it to address and communicate pitches across the tech enthusiasts, and carmakers; hence the wider market.
What’s the Turn-Down?
TomTom (Navigational Firm) shares rose slightly during morning trade, in Amsterdam. But, unfortunately, the stock has
lost a quarter of its value since the pandemic has prevailed.
The company with clients like Microsoft. Volkswagen, and Renault, was poorly gotten hit during the pandemic due to supply chain shortage which further forced automakers to slash production around the globe.
In April, the cash and sales forecasts were reaffirmed, when immediate effects from the Ukraine-Russia war had been seen as some carmakers and auto supplying factories remained in operation.
Note: TomTom will share an update regarding the matter as soon as it announces the quarterly financial results on July 15.
