Details of the savings plan

KTM

Motorcycle manufacturer KTM - here owner Stefan Pierer - is under enormous pressure. The need for financing is great.

(Bild: Krone KREATIV/EXPA, Markus Wenzel)

A far-reaching restructuring is necessary, a three-digit million amount is needed to secure liquidity for 2025 at KTM AG - this was announced by Pierer Mobility. There is great trepidation among the workforce: how many jobs will be lost? Due to a shift reduction, 300 workers in production will have to go, and everything is still open in administration.

At first glance, KTM's online presence gives no indication that there is a great deal of turmoil behind the scenes at the motorcycle manufacturer. Only when you take a closer look do you find an offer that shows just how high the Mattighofen-based company's stocks must be: More than 30 models from 2023 and 2024 will be sold off by the end of December by giving customers a reduction in VAT ...

Savings program has been running since December 2023
The stuttering demand, which has also spread to the North American market, combined with the sharp rise in costs and high inventories, means that Pierer Mobility now has to pull the ripcord. Although staff have been reduced in stages since December 2023, parts of development and production have been relocated to Asia and the company is on the cost brake, this is not enough.

Pierer Mobility AG therefore announced on Tuesday evening: A far-reaching restructuring is necessary at KTM, and there is also an additional liquidity requirement in the three-digit million range. It was also made clear that production would be cut back in order to reduce inventories. The cost-cutting pencil is being used in administration.

A further 200 jobs were announced in August
What does this mean for the workforce? The majority of employees who manufacture motorcycles for the KTM, Husqvarna, GasGas and MV Agusta brands work in Mattighofen and Munderfing. At the end of June, the headcount was reported at 6024 employees, rising to 6184 at the end of 2023. At least 300 jobs were to be cut in an initial wave of redundancies launched in December of the previous year. In August 2024, it was then announced that a further 200 employees would have to go.

Production comes to a standstill in January and February
What exactly the restructuring will mean for jobs in the end is completely open. There will definitely be cuts. Specifically, it is now becoming apparent that 300 jobs will be lost due to the reduction of one shift in motorcycle assembly. A production interruption is planned at the beginning of 2025 - for January and February. This means that 1000 employees will stay at home and receive the same pay as if they were working 30 hours a week. At the same time, the other 4,000 employees will take a week's vacation and then also reduce to a 30-hour week during this time. How many employees in administration will have to go is still open.