KTM AG is implementing a reduction of approximately 500 employees as part of a comprehensive efficiency program designed to strengthen the company's long-term competitiveness. The cuts, which are predominantly in salaried positions and middle management, follow the company's insolvency at the end of 2024 and its subsequent new start in 2025. CEO Gottfried Neumeister described the decision as difficult but necessary to lower costs and simplify the organization.
The measures are focused on reducing fixed costs, streamlining corporate structures, and refining the product and project portfolio. A key aspect of the restructuring involves removing one management layer to decrease organizational complexity. All actions are concentrated on the Motorcycles segment, which includes the core brands KTM, GASGAS, and Husqvarna. The company's headcount stood at 3,794 employees as of December 31, 2025.
This workforce reduction is the latest step in a broader realignment that began in 2025. Earlier actions included the divestment of the bicycle business through the sale of FELT Bicycles, the termination of CFMOTO distribution, and the sales of MV Agusta and X-Bow. The company stated that these moves, along with the current job cuts, are intended to create a smaller, more focused core team with significantly lower structural costs. The goal is to simplify operations and regain a position as a world-leading motorcycle manufacturer.
Bajaj Mobility AG, the holding company for the KTM Group, is providing support for the restructuring. Bajaj Auto International Holdings B.V. serves as the strong majority shareholder. Company leadership views this backing as a clear signal that KTM will maintain its position as a robust international brand. Despite the challenges, KTM reported record motorsport success in 2025, winning 29 championship titles. The company also noted that customer and dealer confidence improved in the latter half of 2025, with inventory reductions occurring faster than anticipated due to strong demand.
KTM AG has submitted the required early warning notifications to the Austrian Public Employment Service (AMS) in accordance with Section 45a of the Austrian Labor Market Promotion Act. The company anticipates that the consistent implementation of these cost-reduction measures will lead to economic improvements in 2026. For more information, the company's corporate website is available at https://www.bajajmobility.com.
