KTM bankruptcy: 750 terminations and a foundation for the future!

KTM bankruptcy: 750 terminations and a foundation for the future!

Oberösterreich, Österreich - The KTM AG and its subsidiaries are facing massive personnel loss due to severe bankruptcy. Economic State Councilor Markus Achleitner (ÖVP) confirmed that a total of 750 dismissals are at risk, which increases the number of employees concerned to around 3,600. 250 layoffs have already been pronounced, and another 500 are planned in an upcoming renovation plan. The uncertainty about the specific employees who have to leave the company remains, as the President of the Upper Austria Chamber of Labor, Andreas Stangl, explained.

help from insolvency foundation

To help the employees concerned, an insolvency foundation is set up, which is financed with 3 million euros from the state and labor market service (AMS). AMS boss Iris Schmidt announced that the foundation will be accessible to the employees from January. As expected, around 150 of the 750 affected employees are integrated into the foundation, which should not only be open to KTM, but should be open to all companies in Upper Austria. This initiative is intended to send a strong signal to the employees and explain that the government is doing everything possible to secure the jobs and enable quick placements. There are currently 3,000 vacancies in the Innviertel alone.

The public sector bears the full costs of the foundation, while the company itself is not involved. However, Stangl emphasized the need for KTM owners Stefan Pierer to be held responsible in order to promote the necessary renovation and to offer the remaining employees a future. The situation requires quick action, with an appeal being addressed to the political decision -makers in order to create structural improvements for the business location, as ORF reports.