At the same time as insolvency proceedings were opened for three KTM companies, it was announced that job losses at the motorcycle manufacturer would be significantly greater than previously thought. Now the wave of dismissals has started: 250 employees have already heard that they have to leave.
To avoid absolute hardship, it should be taken into account if entire families or couples work in the business, it is said. Yet motorcycle manufacturer KTM is now making rapid progress when it comes to rationalization measures.
Surprised by developments
250 layoffs were announced on Monday. Three weeks before Christmas, this is a heavy blow for the employees, who cannot yet believe the developments of the past few weeks at the company from Mattighofen (Upper Austria). The financial turbulence and associated devastation come as a surprise to many.
And the 250 jobs that will be cut initially apparently mark just the beginning of a wave of layoffs. Another 500 jobs could be lost as a result of the planned renovation. In total there are 750 spots wobbling.
Work consultations last until Wednesday
At the same time, the company meetings of the insolvency experts of the Chamber of Labor continue, so that the more than 3,600 employees working at the three companies affected by the bankruptcy (KTM AG, KTM Components GmbH, KTM Forschungs & Entwicklung GmbH) can submit their proposals to claim the insolvency fund. The company owes the November salary and the Christmas bonus comes this week with an advance of 90 percent on the December salary.
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.
