Business

TomTom unveils 50m euro cost-cutting as sales fall 10%

  • 24 October 2011
  • From the section Business
TomTom
TomTom has seen a decline in sat-nav sales

Navigation-system firm TomTom has announced a 50m euro ($69m; £43m) cost-cutting drive after third-quarter sales fall 10% on waning demand.

The Dutch firm reported sales in the quarter of 336m euros from 375m euros a year ago.

The firm blamed slowing sales of satellite navigation devices, which account for half of its total sales.

However, net profit for the three months to September 30 rose to 29m euros from 19m euros last year.

TomTom has confirmed jobs will go as part of the restructuring plan but gave no further details.

The installation of satellite navigation as standard into more new cars has hit TomTom in the past year.

The firm also sells live traffic services for its internet-connected devices and smartphone apps.

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