Officials at GPS manufacturer TomTom have announced plans to cut 10% of their workforce in an attempt to reduce costs as they struggle to compete in a changing market that has largely shifted from standalone GPS units to Smartphones that contain GPS capabilities.
Executives at TomTom have recently announced that they are making “significant” changes to the research-and-development procedures, breaking the company’s activities into ten product groups which they hope will make them more efficient and allow new products to be developed at a faster pace.
According to TomTom CEO Harold Goddijn:
“The new structure brings more transparency and accountability; makes it easier to make innovation choices and will reduce our time to market.”
TomTom has attempted to gain more market share over the last several years by offering mobile applications for iPhone and Android based devices however its market share has been stifled by Google Maps which offers the same type of functionality with no associated cost.
After the company’s restructuring TomTom plans to continue offering standalone devices, fitness devices and other GPS platforms that they have focused on in the past.
The company’s restructuring is expected to save them $67 million.
Do you think TomTom can continue to compete in an ever evolving GPS market that is quickly becoming dominated by Smartphones?