Dutch navigation technology company TomTom has announced plans to lay off 300 employees—around 10% of its global workforce—in a strategic move to curb losses and pivot more heavily towards artificial intelligence.

Once a trailblazer in digital car navigation, the Amsterdam-based firm has seen declining demand for its standalone devices as users increasingly rely on smartphones and built-in vehicle systems for directions.

In a statement on Monday, TomTom said the job cuts stem from a broader organizational restructuring aimed at aligning the company with its growing focus on AI. The layoffs will primarily impact roles within its application layer, as well as sales and support departments.

The company currently employs approximately 3,600 staff globally.

TomTom also revised its revenue outlook, projecting a drop from €574 million in 2024 to between €505 million and €565 million this year.

CEO Harold Goddijn previously told investors that global trade uncertainties, particularly those linked to tariffs introduced by former U.S. President Donald Trump, had clouded the short-term business environment. Nonetheless, he reaffirmed confidence in the company’s long-term direction.