TomTom, the well known Satellite navigation system manufacturer are undergoing a ‘restructuring' process which will mean that 10 percent of their workforce will be made redundant. They also plan to reorganise the R&D budget to speed up the time they take to get products to market.
The firm wants to cut their costs by 50 million Euros to help stop a massive 23 percent drop in consumer sales which they reported in Q3.
TomTom sent out an advisory which was reported on by The Register “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. 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.”
They are claiming that the speed of new product introductions will be noticeable in 2012 onwards.
Kitguru says: Hopefully they manage to remain profitable in 2012.