Motorcycle manufacturer KTM, based in Mattighofen, Upper Austria, is known for its off-road, street, and racing models. The company is intensifying job cuts as part of its restructuring following insolvency, eliminating another 500 positions. A job foundation is intended to serve as a safety net for these affected employees. (t-online: 15.01.26)
KTM to Cut Jobs – Focus on Austria and Middle Management
Around 500 jobs are to be eliminated, with approximately two-thirds of the cuts occurring in Austria. The reductions will primarily affect salaried employees and middle management; the company also anticipates departures at the executive level. This measure will therefore impact the administrative structure. The job cuts are intended to significantly reduce fixed costs.
The decision came from the parent company, Bajaj Mobility AG, which also announced concrete steps to be taken with the authorities. KTM intends to submit early warning notifications to the Public Employment Service (AMS) to ensure the process begins with formal approval. According to the company’s logic, the restructuring should be faster because teams will be leaner and responsibilities will be clearer.
Employment Foundation and Qualification Foundation – Transition Instead of Disruption
An employment foundation for the automotive industry, financed by the state of Upper Austria and the AMS, is available for those affected. Of the original 400 places, more than 300 are currently still available, allowing for a rapid start to training and job placement. The qualification foundation is designed to guide participants directly into new employment, rather than simply managing waiting periods.
KTM justifies the cutbacks with cost reductions and structural adjustments, while simultaneously focusing more intently on its product portfolio. The company aims to reduce fixed costs and eliminate redundancies to lessen the complexity of development and production. This strategy is part of the restructuring, which, following insolvency, is considered a binding framework and not a short-term measure.
Consequences of Insolvency – A Management Level Eliminated
The insolvency of KTM AG at the end of 2024 continues to have repercussions, prompting the company’s management to implement a major restructuring. As part of this program, an entire management level will be eliminated, enabling faster decision-making and clearer allocation of responsibilities. CEO Gottfried Neumeister succinctly summarizes the company’s objective: “These measures are necessary to stabilize the company’s long-term financial stability.” Following the insolvency, this course of action aims to secure the company’s financial foundation, and the job cuts are a key lever for achieving this.
The company cites its workforce of 3,794 employees at the end of 2025 as a benchmark, yet KTM is now planning a significant reduction. At the same time, the motorcycle manufacturer maintains its claim to be Europe’s largest provider of its kind and links this assertion to further restructuring following the insolvency. A job foundation is intended to mitigate the social impact, while internal responsibilities are being redefined.
The restructuring requires speed, but KTM is relying on formal procedures and clear programs rather than ad hoc decisions. The aim of the job cuts is not only to reduce costs, but also to make the company structurally more stable. The employment foundation remains a key instrument in this process, as it can more quickly guide affected employees to new opportunities.