Crisis mood at KTM: 3,600 jobs shake before Christmas!

Crisis mood at KTM: 3,600 jobs shake before Christmas!

Ried, Österreich - The Austrian motorcycle manufacturer KTM is on the abyss. On Friday, November 29, 2024, KTM AG and its subsidiaries, KTM Components GmbH and KTM Research & Development GmbH, had to register with the Ried Regional Court. The balance sheets are alarming: the company's unsafe debts of the company amount to more than two billion euros, which brings around 3,600 employees into uncertain layers. The November salaries are covered by the bankruptcy fonds, but the employees have to expect delays, since the money could only end up in their accounts in the new year, such as Today.at reported.

Financial turbulence and production stops

The cause of this dramatic setback seems to be due to serious management errors and overproduction during Corona pandemic. Despite the sale of around 265,000 motorcycles on end customers in 2024, KTM has an overcap of around 130,000 bikes, which corresponds to around one billion euros. This led to a massive decline in competitiveness, especially on the important US market. KTM AG now has two years to use 550 million euros to operate the creditors' quota, explained .

KTM plans massive cuts, including the termination of a total of 500 employees in various areas. In addition, the production will be temporarily discontinued between mid -December 2024 and the end of February 2025. However, the renovation recipients have hope that the company is possible if the specified renovation plan is successfully implemented. The fate of KTM could be a wake -up call for the entire middle class in Austria, as experts warn.