300 jobs are gone for good

Employees hit so hard by the savings package at KTM

Production in Mattighofen will come to a standstill in January and February.

(Bild: Markus Wenzel (2))

One blow after another at motorcycle manufacturer KTM! Two days after it became clear that a far-reaching restructuring is necessary and that fresh capital is also needed, the first cuts were announced on Thursday. Read here how hard the staff will be hit by the savings package - and what the trade union thinks about it.

There have already been two waves of redundancies at KTM since last December. In the first phase, around 300 jobs were cut because parts of production and development were relocated to Asia. In August 2024, it was then announced that a further 200 employees would have to go.

And now? The new cost-cutting package is hitting the workforce hard - workers and employees alike. Some things are certain: the reduction from two shifts to one shift in motorcycle assembly means 300 jobs will be lost by the end of the year.

1000 employees will stay at home in January and February
Motorcycle production will then come to a complete standstill in January and February. 1000 employees will stay at home during these two months, receiving as much pay as if they were working 30 hours a week.

At the same time, the other 4,000 employees who work for the company will take a week's vacation and then reduce to a 30-hour week in January and February, thereby also accepting a pay cut.

I wonder whether these difficulties should not have been seen earlier. Perhaps they didn't want to see it.

Michael Seemayer, Gewerkschaft PRO-GE

These initial measures were confirmed by Pierer Mobility AG, which also informed employees about them on Thursday. However, it remains to be seen how many administrative employees will have to go. The holding company of KTM AG has announced that there will be adjustments in the overhead area. These will be announced at the appropriate time, according to the Innviertel-based company.

How does the trade union view the drastic measures at KTM? "I was afraid that employees would be made redundant if production was interrupted - I can live with such an agreement, even if the company risk is passed on to the employee," says Michael Seemayer, PRO-GE regional secretary in Upper Austria. A state-subsidized short-time work model would be far better, he says. However, companies have no access to this, as the employment service has been asked to act restrictively.

Call for a social plan
Seemayer sees a need for action for those who KTM now wants to part with: "There was no social plan for the previous waves of redundancies. For those who have to leave now, however, it is difficult to find a job again quickly. Jobs are being cut everywhere."