Half-year loss

KTM tightens austerity package: 200 jobs now to be cut

The heart of motorcycle manufacturer KTM beats in the Innviertel region.

(Bild: Wenzel Markus)

After years of constant growth, KTM is putting on the brakes! After more than 300 employees had already had to leave as part of an initial cost-cutting package, Pierer Mobility announced on Friday: Another 200 jobs will be cut. This time mainly in administration.

At 1.007 billion euros, sales are lower than in the first half of 2023, the operating result is in the red, and the net result for the period is also in the red at minus 172 million euros - all of this means that Pierer Mobility, which includes the KTM, GasGas, Husqvarna and MV Agusta brands, is once again making major cuts.

First savings package as early as December 2023
The motorcycle manufacturer from Mattighofen (Upper Austria) announced on Friday evening that another 200 employees will have to go. More than 300 employees had already had to leave as part of the first cost-cutting package, which was put together in December 2023. The current cutbacks at KTM will primarily affect the administrative area at the Innviertel-based company.

What is causing Pierer Mobility so much trouble? It's mainly declining sales, especially in the USA, as well as the costs arising from the restructuring of the bicycle division. Added to this are the production and personnel costs in Europe, which is why the company has already relocated parts of its development and production to Asia.

Development to become faster
In addition to the cost-cutting program, Pierer Mobility is also committed to increasing efficiency in product development. The development processes are also to be significantly accelerated.