The planned interim financing did not materialize, as was clear on Tuesday: KTM AG and two other companies of the motorcycle manufacturer from Mattighofen (Upper Austria) will file for bankruptcy today, Friday. The employment service is joining forces and has even asked for help in Lower Austria.
“There is close coordination between the AMS, the Chamber of Labor and the State of Upper Austria, so that all steps are taken to support workers,” Markus Achleitner, economic councilor of Upper Austria, said on Tuesday – just a few hours after the planned bankruptcy filing. at KTM AG and two other companies, well-known motorcycle manufacturers – were announced.
Production is at a standstill in January and February
According to the Mattighofen-based company, 3,650 employees are affected by the restructuring application for self-government, which must be submitted to the regional court in Ried im Innkreis. KTM itself plans to reduce production by 300 employees and will even shut down production completely in January and February 2025. It is unclear how many administrative employees will have to leave. Cuts had already been announced here on November 12, but these have not yet been specified.
In the course of the bankruptcy proceedings, in which the management around Stefan Pierer and Gottfried Neumeister will continue to run the company, it will become clear whether the measures already announced will be implemented or whether more employees will have to leave. In addition, the financial problems at KTM also have consequences for many supply companies: bankruptcies will also occur here, and virtually no company will be able to do so without losing jobs.
The Labor Market Service of Upper Austria has already started to prepare for the increasing number of unemployed. “We are preparing,” says general manager Iris Schmidt.
Employees are asked how much overtime they are allowed to work and who is also allowed to work on Saturdays. It will also be clarified who can work temporarily in the Braunau region, to which KTM belongs, to register unemployment reports. “The calculation of applications is then no longer location-specific,” says Schmidt, who has already asked for help from the public employment service in Lower Austria.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
