Feeds

TomTom axes 10% of workforce

Overhauls R&D groups

Intelligent flash storage arrays

Sat-nav maker TomTom is axing 10 per cent of the workforce and reorganising the R&D budget to speed up the time it takes to get products to market.

The move is part of a restructuring programme designed to slash costs by some €50m and counter a 23 per cent slowdown in consumer sales reported in Q3.

"We will reduce the number of full time jobs by 457, which accounts for approximately 10 per cent of the total workforce. 255 roles will be made redundant, half of which are in The Netherlands," said Tom Tom.

"The remainder will be achieved through attrition. A restructuring charge of €14m will be booked in Q4 2011 in relation to the redundancies and rationalisation of office space," it added.

The firm said R&D work will be spread across 10 product group: Maps Traffic, Navigation, Automotive Systems, PNDs, Fleetservices, Fitness, Mobile, POIs and Speedcams.

A larger proportion of R&D budgets will be allocated to higher growth areas including maps, traffic intelligence and navigation.

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."

He claimed the speed of product introductions will be seen from next year.

Third quarter numbers showed a 10 per cent slide in sales to €336m, but the profits went up 50 per cent to €29m. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.