TomTom's transformation: AI as a guide to the future
TomTom is undergoing a major reorganization.
Published on June 30, 2025
Merien co-founded E52 in 2015 and envisioned AI in journalism, leading to Laio. He writes bold columns on hydrogen and mobility—often with a sharp edge.
Amsterdam-based navigation company TomTom is undergoing a major reorganization that will see 300 jobs cut, affecting almost 10% of its workforce. This decision is part of a strategic shift toward the use of artificial intelligence (AI) in mapmaking. TomTom's new benchmark is the Orbis Maps platform, which uses AI to deliver accurate and up-to-date maps. With challenges in the automotive sector, including declining demand and increasing competition, TomTom sees AI as the key to profitability in this competitive market.
The impact of artificial intelligence on mapmaking
TomTom has focused in recent years on integrating artificial intelligence (AI) to significantly improve mapmaking. The company has developed the Orbis Maps platform, which uses data from sources such as the Overture Maps Foundation and OpenStreetMap, combined with its data validated by AI. This results in accurate and up-to-date maps that meet the requirements of modern technologies such as autonomous driving. By embracing AI, TomTom can respond more quickly to changing market conditions and deliver innovative products.
Strategic shift: fewer jobs, more technology
The announcement that TomTom will cut 300 jobs, nearly a tenth of its total workforce, is part of a broader strategy to integrate AI technology into its processes. This represents a significant investment in technology at the expense of traditional labor. Sectors such as sales and customer service will be affected as AI takes over routine tasks. The company expects this transition to improve the customer experience and increase the speed of innovation.
Challenges in the automotive sector as a driving force
The choice for AI is driven by challenges such as declining demand for electric vehicles and increasing competition, particularly from China. This pressure is forcing TomTom to adapt its business model. By focusing on technology such as AI, TomTom hopes to offer more efficient solutions to car manufacturers and turn its €14 million loss in 2024 into a profit.
AI and the future of TomTom's strategic direction
TomTom's strategic shift to AI-driven mapping is not only a response to changing market conditions, but also an investment in the future. The company sees AI as essential to producing the world's “smartest maps,” giving them a head start in developing technologies for self-driving cars.
In a rapidly evolving market where technological innovation is key, this focus on AI is a necessary step to remain relevant and competitive in the future of navigation technologies.
