TomTom shares up as it will cut 10% of workforce

TomTom TomTom has seen a decline in sat-nav sales

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Navigation system firm TomTom has said it will cut 10% of its workforce as part of its 50m euros ($69m; £43m) cost-cutting drive.

The Dutch firm will cut 457 jobs, and it will take a 14m euros charge in the fourth quarter.

Shares of the firm were earlier up more than 2.6% in trading in Amsterdam.

The firm has been hit by slowing demand for its devices, which account for half of its total sales. It increasingly sells them built into car dashboards.

It also sells live traffic services for internet-connected devices and smartphone apps - an area where it has faced competition from the likes of Google.

TomTom said it will move its divisions into 10 product units, including maps, traffic, navigation, fitness, and personal navigation devices.

"The new structure brings more transparency and accountability [and] makes it easier to make innovation choices and will reduce our time to market," said TomTom boss Harold Goddijn.

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