Austrian Motorcycle giant KTM is going through a difficult time. Faced with falling sales, the company announced a major restructuring plan including job cuts and reduced production.
Stefan Piererthe boss of the group
Pierer and of KTMrecently shared details on the actions the company will take in the coming months to stabilize its situation. Due to the decline in brand sales KTM, Husqvarna et
SCRATCH globally, the company is facing a significant reduction in its workforce, with confirmation of 280 to 300 layoffs to come.
These layoffs are in addition to previous job cutsOr KTM had already decided to reduce its production staff by 300
people and its workforce in research and development
120 employees last spring. According to
Piererthe company plans a production interruption in January and Februaryin order to manage excess inventory. A model of partial unemployment will be put in place, with a reduction in weekly working hours to 30 hours for certain employees.
KTM shares went from 90 euros to 8.62 euros in the space of three years
The objective of KTM is to stabilize its costs and sales by fiscal 2025, while adapting its production to market conditions. The group also plans to restructure its operations by operating on a single team, which could result in the loss of jobs for around 300 of the 5,000 current employees. Some reports indicate the possibility of reducing up to 1,000 positions in total.
The Pierer group also announced a reorganization within its board of directors, while KTM
is currently seeking a significant financial injection,
of the order of a million with three figures according to rumor … Negotiations are underway with shareholders and creditors to guarantee the stability of the company. This difficult context had an immediate impact on the action of KTMwhich fell drastically, from 90 euros to 8.62 euros in the space of three years.
It is unclear whether these difficulties will affect the MotoGP project. At the start of the summer vacation, KTM hope
Pedro Acosta had visited the Mattighofen factory and inquired about the situation. The Spaniard assured that “ investment in the MotoGP project would continue« .
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