For KTM employees

KTM employees

The KTM headquarters in Mattighofen should return to something like normality from Tuesday.

(Bild: Scharinger Daniel)

Tuesday, January 7, 2025 - for many Austrians, this day is the first after the vacations around Christmas and the turn of the year. At KTM, too, something like everyday life is supposed to return on this day. But: nothing is the same as it was in December and before the opening of insolvency proceedings. In addition, the paralyzing uncertainty surrounding the next wave of layoffs is weighing on the company.

The company vacation for Christmas and New Year's Eve started a week earlier than usual, which is why production at KTM has been at a standstill since the evening of December 13 and will not be restarted until the beginning of March at the earliest, perhaps even later. It is just one of many question marks surrounding the insolvency of the motorcycle manufacturer, which is fighting for restructuring and thus for its future.

Vote on restructuring plan on February 25
On January 24, the examination hearing will take place at the regional court in Ried im Innkreis, on February 25, the restructuring plan will be voted on - while these dates are set in stone in the course of the insolvency proceedings at KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH, many other things are not set in stone. This also applies to the start of the second wave of layoffs, which will begin in the next few days as a result of the bankruptcy.

The next wave of redundancies will now mainly affect employees
While it was initially feared that a further 500 employees would lose their jobs, it is now a maximum of 300 employees who will have to go. This much seems clear: the next job cuts will mainly affect the white-collar sector of the lead company.

It is possible that the production stop will be extended
At the beginning of December 2024, 250 employees had already been made redundant - at that time, it was mainly blue-collar workers whose end was sealed because after the production break, operations will be reduced from two shifts to one shift. Nevertheless, many of the remaining 1000 workers are also trembling in the face of the uncertain situation: it seems possible that the production stop, which should have ended at the end of February, will be extended until the end of March. For the time being, they will remain idle at home, receiving a wage for a 30-hour week.