Curated News
By: NewsRamp Editorial Staff
January 13, 2026
KTM Cuts 500 Jobs in Major Restructuring to Regain Global Leadership
TLDR
- KTM AG's restructuring reduces costs and complexity, positioning the company to regain its status as a leading global motorcycle manufacturer with stronger competitiveness.
- KTM AG is implementing an efficiency program by reducing 500 employees, streamlining structures, focusing on core motorcycle brands, and optimizing international operations to lower fixed costs.
- By stabilizing its operations, KTM AG aims to secure long-term employment for remaining staff and maintain confidence among customers and dealers in the motorcycle industry.
- Following its 2024 insolvency, KTM AG is cutting 500 jobs and simplifying its model range to refocus on its core KTM, GASGAS, and Husqvarna motorcycle brands.
Impact - Why it Matters
This restructuring impacts the motorcycle industry by signaling KTM's aggressive push to recover from insolvency, which could affect market competition, employee livelihoods, and investor confidence. For consumers, it may lead to more focused product lines from KTM, Husqvarna, and GASGAS, potentially enhancing innovation and quality in premium motorcycles. Economically, it reflects broader trends in manufacturing efficiency and corporate resilience, with implications for supply chains and regional employment in Austria, where KTM is a key player. The company's success or failure in this turnaround could influence industry standards for post-crisis management and brand revitalization.
Summary
KTM AG, the Austrian motorcycle manufacturer operating under Bajaj Mobility AG, is implementing a significant restructuring program following its 2024 insolvency, with the difficult but necessary decision to eliminate approximately 500 positions—primarily in salaried roles and middle management—to reduce fixed costs and streamline operations. This workforce reduction, which represents about 13% of the company's 3,794 employees as of December 31, 2025, is part of a broader efficiency drive aimed at simplifying structures, focusing on the core Motorcycles segment featuring the KTM, GASGAS, and Husqvarna brands, and removing a management layer to enhance competitiveness. CEO Gottfried Neumeister emphasized that these measures are essential to place the company on stable long-term footing, with the goal of returning KTM to its position as one of the world's leading motorcycle manufacturers, supported by strong majority shareholder Bajaj Auto International Holdings B.V.
The restructuring follows a series of strategic divestments in 2025, including the sale of FELT Bicycles, the termination of CFMOTO distribution, and the sale of MV Agusta and X-Bow, which have already streamlined the company's portfolio. With a smaller core team and lower structural costs, KTM aims to achieve economic improvements in 2026, building on record motorsport successes with 29 championship titles in 2025 and strong customer and dealer confidence evidenced by faster-than-expected inventory reductions due to robust demand. The company has submitted early warning notifications to the Austrian Public Employment Service (AMS) as required by law, ensuring compliance with labor regulations while pursuing this realignment.
For further information, stakeholders can visit the company's website or contact Investor Relations at ir@bajajmobility.com, with additional details available on www.newmediawire.com, where the original release provides comprehensive insights into these restructuring steps. This news highlights KTM's commitment to overcoming past financial challenges through focused operational efficiency, leveraging its premium brand reputation and international support to navigate the competitive motorcycle market, which is crucial for its future sustainability and growth in the industry.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, KTM Cuts 500 Jobs in Major Restructuring to Regain Global Leadership
