TomTom, the Dutch GPS manufacturer, announced on June 30 that it is reducing its workforce by 300 positions due to the integration of artificial intelligence (AI) into its operations. This strategic shift aims to enhance product development and improve user experience through updated mapping technologies and more flexible software. CEO Harold Goddijn emphasized that these advancements will expedite product launches. Job cuts will primarily affect app development, sales, and support teams. Notably, TomTom has ceased selling portable GPS devices in the U.S., with declining demand as consumers favor free navigation apps like Google Maps and Waze. Instead, the company is focusing on mobile navigation solutions such as TomTom GO Navigation and partnerships with automakers for location-based services. Although it continues to sell GPS hardware in Europe, TomTom is transitioning to in-dash navigation systems. Other companies like Salesforce and Amazon are also reducing jobs in the wake of AI advancements.
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