At KTM AG, further measures are being taken to ensure the survival of the company; Solidarity is being demanded from the currently around 3,700 employees at Europe’s largest motorcycle manufacturer.
At the beginning of the week, a so-called European restructuring procedure was initiated in Austria for the first time at Pierer Mobility AG, based in Wels. Creditors must submit their demands and the managers around boss Stefan Pierer must present sound plans for the restructuring and make them credible.
At KTM AG, a subsidiary of Pierer Mobility AG, it’s still about the nitty-gritty: The approximately 3,700 employees at Europe’s largest motorcycle manufacturer now have to show solidarity and forego part of their salaries. According to the Upper Austrian Chamber of Labor, wages and salaries for November and December as well as the upcoming Christmas bonuses will be withheld.
This is a protective measure: If the group’s restructuring process is successful, the insolvency fund will subsequently pay out the withheld funds.
Around 700 jobs had to be cut in 2024. Most recently it was announced: In a further step, 300 employees will be laid off. The number of employees was also reduced through early retirement and the lack of new positions. Production comes to a standstill in January and February. Part of the workforce will receive reinstatement guarantees when production at KTM starts again from March 1, 2025 after a two-month break.
According to his own statements, Stefan Pierer wants to fight vehemently for his life’s work, KTM. In the wake of the turbulence at KTM, things could also become critical for regional suppliers. According to the employment service, the industrially strong Braunau district is currently struggling with the effects of the recession. Unemployment figures have risen above average in recent months. Representatives of Upper Austrian state politics are now demanding that if KTM needs public help as part of the rescue, state participation or state shares must be considered.
