‘Embracing AI’: Dutch tech company TomTom cuts 300 jobs

A once-iconic tech company is cutting approximately 10 per cent of its workforce to “embrace artificial intelligence” and stem losses.

Dutch car navigation firm TomTom announced on Monday that it was cutting 300 jobs, approximately 10 per cent of its workforce, to stem financial losses and “embrace artificial intelligence”.

The Amsterdam-based company was an early pioneer of digital navigation in cars but has struggled in the age of Apple and Google Maps.

This week, TomTom announced in a statement that it was “realigning its organisation … as it embraces artificial intelligence”, resulting in “organisational changes”.

TomTom has announced job cuts. (stock image)

MORE: 8 things you didn’t know you could be fired for

These changes would affect “certain roles in the units working on our application layer and in our sales and support functions, resulting in a reduction of 300 roles,” the firm said.

The company employs around 3,600 people worldwide.

TomTom forecasts a drop in sales from 574 million euros (AU$1.029 billion) in 2024 to 505-565 million this year.

Chief executive Harold Goddijn told investors in April that trade tensions resulting from US President Donald Trump’s tariffs made the short-term outlook for the firm “less predictable”.

However, he said that he remained “confident in our long-term trajectory”.

It comes as AI is forecast to decimate the global workforce by 2050, according to reports from organisations such as PwC, McKinsey, and the World Economic Forum.

Estimates suggest up to 60 per cent of all current jobs will require significant adaptation due to AI.

Experts warn that AI could significantly impact jobs globally, with roles in administration and call centres being particularly vulnerable. Picture: AFP

MORE: A guide to redundancy: Pay, entitlements and advice

Already in Australia, some workplaces are feeling the impact of AI-adoption.

In May, news.com.au shared the story of a Sydney medical receptionist who described the dreaded moment AI replaced her and others on her team.

Four staff were told emails would be automatically filed into separate mailboxes, and patients would be greeted with a generic computer-generated message, saying, “thanks so much, we’ll get back to you shortly”.

Niusha Shafiabady, an associate professor in Charles Darwin University’s Faculty of Science and Technology warned earlier this year, “Jobs that rely on humans following pre-existing instructions and don’t need many or any analytical thinking skills will be impacted relatively quickly.”

“I’m talking about clerical or secretary roles, and jobs in administration, for example,” she said.

Professor Shafiabady said that after identifying six of the most at-risk roles in Australia, she found that they all fell within the administrative realm.

Call centre workers were near the top of the list, she said.

“The tasks for this type of job can be replicated by an AI computer system, so it will be displaced,” she said.

Advanced technologies are increasingly capable of carrying out tasks traditionally done by humans, leading to potential job displacement in numerous sectors. Picture: AP

Also at risk are those working as secretaries and foreign language interpreters, as advanced technologies can replicate many of these functions.

Even secretaries working in healthcare, such as a GP clinic receptionist, could be “relatively easily replaced”.

“A bookkeeper’s job could also be displaced relatively quickly, since the information flow can be captured by software systems,” she said.

“At the very least, the number of required positions for this role are likely to decrease.”

And those Australians whose job requires them to enter data into a computer system should brace for an imminent disruption, she said.

As demonstrated in a viral video last week, those taking orders at chain restaurants in Australia could become obsolete relatively quickly, as the existing technology has proven to be effective.