KTM before the end: hundreds of jobs at risk - bankruptcy shaken!

KTM before the end: hundreds of jobs at risk - bankruptcy shaken!

Mattighofen, Österreich - KTM, the well -known motorcycle manufacturer based in Mattighofen, filed for bankruptcy on May 16, 2025. This decision has far -reaching consequences because hundreds of employees lose their jobs. The uncertainty about the professional future of the employees is enormous, which also affects the situation at the production facility. In order to meet the financial challenges, the summer break for the employees from August to July was brought forward, which indicates that corporate management wants to take faster measures.

The financial crisis at KTM has worsened because the parent company Pierer Mobility has announced the complete task of its bicycle division. CEO Gottfried Neumeister explains that the bicycle business has contributed decisively to the current misery. In the past two years, massive losses of around 400 million euros have been recorded in the field of bicycle financing, which has led to a significant liquidity outflow. As an example, the productions of bicycles were stopped at the end of the previous year, while e-bikes continued to be produced until April 2023.

renovation plans and workplace reduction

Pierer Mobility AG is currently in final negotiations to secure 600 million euros to implement necessary renovation plans. The continued existence of the company depends largely on this financing package. As part of an announced savings course, around 1850 jobs are to be canceled by March 2025; Another 220 jobs are on the brink in this financial year. In addition, stocks are gradually sold, with discounts of up to 60% offering bicycles and accessories.

The existing bikes & wheels locations in Wels and Vöcklabruck are closed, while the location in Linz remains for the time being. The Pierer Group will concentrate on the two locations in Munderfing (Austria) and Murrieta (California), while several international branches in Germany, Great Britain and South Africa have already been closed.

production stop and effects on the workforce

The production of new motorcycles in Mattighofen was resumed on March 17, 2025, but production will be standing still until the end of July 2025. This happens due to the lack of components after many suppliers have set their delivery during the bankruptcy. In a video message to the workforce, Neumeister expressed understanding for the attitude of the suppliers who did not want to enter into any new obligations during this turbulent phase. The situation sounds worrying even for the workforce, since customers and dealers live in uncertainty about what the future has for KTM.

Currently there are many employees in short-time work, work 30 hours a week and receive 20 percent less salary between May 1 and July 31, 2025. Office workers have been switched to a 4-day week, while workers can work from home. The uncertainty is omnipresent and increases the concerns about the long -term securing of jobs.

In order to end bankruptcy, KTM must repay around 600 million euros to creditors by May 23, 2025. The search for new investors has been running for months, but the hope for soon improvement is dampened in view of the economic situation of the company. In this context, the planned capital increase was also taken at short notice by the agenda of the extraordinary general meeting on April 25, 2025, which raises additional doubts about the financial stability of the company.

The situation of KTM remains tense, and the coming weeks and months will be crucial to secure the future of the company and its employees.