TomTom Losing Interest in Personal Navigation Devices, Will Reduce Workforce by 10 Percent
TomTom Losing Interest in Personal Navigation Devices, Will Reduce Workforce by 10 Percent
Posted 12/09/2011 at 12:37pm
| by Paul Lilly
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Dutch GPS device maker TomTom isn't super confident in the future of personal navigation devices (PNDs) and is undergoing a restructuring effort that involves shifting its focus to pre-installed navigation devices in automobiles and fleet management applications. Unfortunately for some of TomTom's employees, the company's efforts also entail a 10 percent workforce reduction.
TomTom posted better than expected results in the third quarter of 2011 as the drop in PND demand wasn't as steep as predicted, but with smartphones and Google Maps taking over, there doesn't appear to be a long-term future in PNDs. So, TomTom is slashing its workforce by 10 percent, which is part of an effort to shave annual operating spending by €50 (around $67 million), according to a report in the Financial Times.
For TomTom employees, this is crummy news going into the holiday season, though for the company at large, it's just the beginning. TomTom also plans to shake up its research and development efforts to focus on ten specific product areas, which in turn will help the company "make innovation choices" and get products to market quicker, Harold Goddijn, chief executive of TomTom, told FT.
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kbjordan
December 12, 2011 at 9:18pm
Smart move by TomTom, I really don't see PND's existing at all in a few years.
I'm an installer, so I spend my day punching in addresses to peoples' houses. I used to use a Garmin, but the accuracy on the thing was terrible and it couldn't find houses reliably at all, probably due to the fact that I do a lot of work in new construction. Plus, map updates cost like $50 which is total BS. With my Android phone though, I have Google maps and a little GPS in there, and it has never failed to find anything at all, plus I get restaurant reviews, live traffic, and even sattelite pictures of most houses.
leo655
December 10, 2011 at 9:52am
I hope this doesn't stop the free maps for mine. I much prefer a dedicated device that is portable from car to car and to walking.
bloodgain
December 09, 2011 at 1:37pm
I still prefer to have a dedicated PND for when I may go out of 3G or better coverage (still quite a few back roads with limited coverage). Dedicated devices are still better at their assigned tasks than multi-use devices like smartphones, too -- plus, you don't have to run down your phone battery if you forgot the charger or buy a special mount for it.
Still, I prefer Garmin, so no big deal ;-)
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