AI Takes Over: 300 Jobs Cut as TomTom Embraces Artificial Intelligence

Dutch car navigation firm TomTom has announced a significant reduction in its workforce, cutting 300 jobs (approximately 10% of its employees) to address financial losses and pivot towards artificial intelligence (AI). This move highlights the growing impact of AI on the global workforce, with predictions suggesting up to 60% of current jobs may require adaptation due to AI advancements.

The Shift Towards AI

TomTom, once a leader in digital car navigation, has faced challenges competing with tech giants like Apple and Google Maps. The company's decision to "realign its organisation" reflects a broader industry trend where businesses are increasingly relying on AI to streamline operations and reduce costs.

Global Workforce Impact

Reports from PwC, McKinsey, and the World Economic Forum forecast that AI could decimate the global workforce by 2050. In Australia, the effects are already being felt, with roles in administration, clerical work, and call centers identified as particularly vulnerable.

Real-life Examples

A Sydney medical receptionist shared her experience of being replaced by AI, where automated systems now handle emails and patient greetings. Niusha Shafiabady, an associate professor at Charles Darwin University, warns that jobs requiring minimal analytical thinking are at the highest risk.

At-risk Jobs in Australia

• Call center workers
• Secretaries
• Foreign language interpreters
• Bookkeepers
• Data entry clerks

These roles are susceptible to automation, with AI systems capable of replicating many of their functions. Even positions in healthcare administration are not immune, as demonstrated by the replacement of receptionists in GP clinics.

The Future of Work

As AI continues to evolve, workers in vulnerable sectors must adapt and upskill to remain relevant in the changing job market. The story of TomTom serves as a stark reminder of the transformative power of AI and its potential to reshape industries worldwide.