KTM AG to Cut 500 Jobs in Restructuring Under Bajaj Mobility AG's Efficiency Program

KTM AG announces a reduction of about 500 employees as part of a restructuring effort to cut costs and streamline operations, aiming to strengthen competitiveness following its 2024 insolvency and recapitalization under Bajaj Mobility AG.

Chicago Metrowire Staff
Business
KTM AG to Cut 500 Jobs in Restructuring Under Bajaj Mobility AG's Efficiency Program

KTM AG, the motorcycle manufacturing unit of Bajaj Mobility AG (formerly PIERER Mobility AG), is implementing a significant restructuring that will result in the reduction of approximately 500 positions, predominantly in salaried roles and middle management. The move is part of a broader efficiency program designed to sustainably strengthen the company's competitiveness after its insolvency at the end of 2024 and subsequent recapitalization under new majority shareholder Bajaj Auto International Holdings B.V.

The headcount as of December 31, 2025, stood at 3,794 employees. The company stated that the necessary early warning notifications under Section 45a of the Austrian Labor Market Promotion Act (AMFG) will be submitted to the competent Public Employment Service (AMS). CEO Gottfried Neumeister explained, "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. 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 focused on the Motorcycles segment with the three core brands KTM, GASGAS, and Husqvarna. In 2025, the company had already divested its bicycle business with the sale of FELT Bicycles. The termination of the distribution of CFMOTO and the sale of MV Agusta and X-Bow marked further milestones in the realignment. With a smaller core team and significantly lower structural costs, KTM AG aims to simplify and focus to once again become one of the world's leading motorcycle manufacturers.

With Bajaj Auto International Holdings B.V. as a strong majority shareholder, Bajaj Mobility AG provides solid support for the rightsizing in Austria and worldwide. This signals that KTM will continue as a strong international brand. In 2025, KTM achieved record successes in motorsport with 29 championship titles. Economic improvements are expected in 2026 through consistent cost reductions. Customer and dealer confidence in KTM was evident in the second half of 2025 through inventory reductions faster than expected due to strong demand.

For further information, visit Bajaj Mobility AG's website or view the original release on NewMediaWire.

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