TomTom to cut 200 jobs, trims 2026 revenue outlook midpoint

TomTom announced on Thursday that it will be cutting approximately 200 jobs and revising its 2026 revenue guidance. The job reductions are part of a reorganization into three divisions: Automated Driving, Location Intelligence, and Navigation. CEO Mike Schoofs stated that these changes would impact about 200 roles and result in a restructuring charge of around €15 million in the fourth quarter, with annualized savings of about €21 million.

TomTom has narrowed its revenue forecast for 2026 to €505 million-€530 million, down from the previous range of €495 million-€555 million. The company also raised its operating margin outlook to around 4% from around 3%. CFO Taco Titulaer explained that the increase in the margin forecast is due to stronger performance this year and lower salary costs expected in the fourth quarter from the reorganization.

Excluding the one-off restructuring charge, the margin would be around 7%, higher than the consensus of 5%. Operating profit was €6 million, surpassing the consensus of €3 million, and operating expenses were €111 million, lower than the consensus of €116 million. Revenue was €129 million, below the consensus estimate of €131 million.