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TomTom to Lay Off 10% of its Workforce
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In-car navigation provider, TomTom has announced that it is cutting 457 jobs - or roughly 10% of its workforce as it restructures its research and development activities.
Existing R&D activities will be regrouped in ten product units: Maps, Traffic, Navigation, Automotive Systems, PNDs, Fleetservices, Fitness, Mobile, POIs and Speedcams.
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. I am confident that our customers will start to see the benefits and a higher pace of product introductions as soon as 2012."
In total, 255 roles will be made redundant, half of which are in The Netherlands. The remainder will be achieved through attrition. A restructuring charge of EUR14 million will be booked in Q4 2011 in relation to the redundancies and rationalisation of office space.
The company also confirmed its target to achieve cash savings of approximately EUR50 million in 2012 compared to the previously announced guidance of EUR540 million of OPEX and EUR80 million of CAPEX in 2011. The majority of the savings will be achieved in operating expenses, and will be most visible in general and administrative and marketing expenses. A larger proportion of R&D expenditure will be allocated to growth areas, strategic assets (maps, traffic intelligence and navigation) and new initiatives.
Tags: [tomtom] [Netherlands]
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