KTM AG is implementing difficult but necessary measures to continue the successful new start of 2025 following the company's insolvency at the end of 2024. As part of an efficiency program, the motorcycle manufacturer announced a reduction of around 500 employees, predominantly in salaried positions and middle management, to sustainably strengthen competitiveness.
The company stated that early warning notifications pursuant to Section 45a of the Austrian Labor Market Promotion Act will be submitted to the competent Public Employment Service. The headcount as of December 31, 2025, amounted to 3,794 employees, making this reduction represent approximately 13% of the workforce.
"This reduction in positions is a difficult but necessary decision to lower our costs, slim down structures, and thereby place the company on a stable footing for the long term," said CEO Gottfried Neumeister. "We are reducing complexity across all areas - for example in our model range, in IT, and also in the organization of our departments, particularly by removing one management layer."
All measures are being taken with a clear focus on the Motorcycles segment with the three core brands KTM, GASGAS, and Husqvarna. This restructuring follows several strategic moves in 2025, including the divestment of the bicycle business with the sale of FELT Bicycles, termination of CFMOTO distribution, and the sale of MV Agusta and X-Bow.
With Bajaj Auto International Holdings B.V. as a strong majority shareholder, Bajaj Mobility AG has solid support in accompanying the rightsizing in Austria and worldwide. This partnership provides stability as the company pursues its goal of simplification and focus to once again become one of the world's leading motorcycle manufacturers.
The company's website at https://www.bajajmobility.com provides additional corporate information. In 2025, KTM achieved record successes in motorsport with 29 championship titles, demonstrating the brand's continued competitive strength despite financial challenges.
With the consistent implementation of cost reductions, economic improvements are expected to be realized in 2026. Customer and dealer confidence in KTM became clearly evident in the second half of 2025 through inventory reductions, which were carried out faster than expected due to strong demand.
This restructuring represents a critical phase for the European motorcycle industry, as one of its premium manufacturers takes decisive action to address structural challenges. The workforce reduction, while painful for affected employees, reflects broader trends in manufacturing where companies are streamlining operations to remain competitive in global markets.
The implications extend beyond KTM to the broader automotive sector, where manufacturers worldwide are facing pressure to optimize costs while maintaining brand strength and technological innovation. The success of this restructuring could serve as a case study for other companies navigating post-insolvency recovery while maintaining premium brand positioning.
