The reduction of 457 jobs, 255 of which will be redundancies, is part of a move to save €50m (£43m) in 2012.
The Dutch company has struggled in the wake of free navigation apps on smartphones and inbuilt sat-navs in new cars.
TomTom has also announced a restructuring, which will see its current research and development activities regrouped into 10 product units including maps, traffic and mobile.
The reshuffle will mean the company takes a €14m charge in the fourth quarter to cover cuts.
Chief executive Harold Goddijn said: “The new structure brings more transparency and accountability, and and will reduce our time to market.”