Dutch maker of personal navigation devices TomTom announced it plans to cut jobs in a major restructuring programme as it reported third-quarter revenues falling 10 percent to EUR 336 million due to a continued fall in demand. Net profit for the quarter lifted 50 percent to EUR 29 million. CEO Harold Goddijn said TomTom had to adapt to the changing nature of the industry and that a headcount reduction was necessary to achieve this. The CEO did not specify how many jobs would go but did say that the reduction would only partially be achieved through attrition. The restructuring programme will focus the company on areas of the greatest growth potential. The company will continue to invest in its global map database, in navigation technologies and its leading traffic service. With the implementation of the programme, the company hopes to achieve additional savings of around EUR 50 million this year. It now expects full-year revenue towards the upper end of its guidance of EUR 1.225-1.275 billion, with earnings per share at the upper end of its EUR 0.25-0.30 range, excluding impairment and restructuring charges. Operating expenses for the year are now seen at EUR 540 million, excluding impairment and restructuring charges, with capex guided at EUR 80 million. The device maker said it will say more about its restructuring programme towards the end of the current quarter. The third quarter saw a drop of 23 percent in consumer sales, partially offset by increased revenue in the other business units. In general, TomTom sold less units in the European and the North American markets, which together declined 19 percent year-on-year. The company did announce an expansion of automotive partnerships with Renault, Fiat and Mazda and successful product launches in India.
