TomTom looks to cut ten per cent of its workforce

TOMTOM, the satellite navigation system company, yesterday announced plans to cut 10 per cent of its workforce in an attempt to cut costs.

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.”