Tuesday, January 7, 2025 – for many Austrians the day is the first after the Christmas and New Year holidays. Something like everyday life should also return to KTM on this day. But: Nothing is the same as in December and before the bankruptcy declaration. Moreover, the crippling uncertainty surrounding the next wave of layoffs is a burden.
The company holiday for Christmas and New Year’s Eve started a week earlier than normal, which means that production at KTM has been at a standstill since the evening of December 13 and will not restart until early March at the earliest, perhaps even later. It is just one of the many question marks surrounding the bankruptcy of the motorcycle manufacturer, which is fighting for restructuring and thus for its future.
Vote on the restructuring plan on February 25
The examination meeting will take place on January 24 at the regional court in Ried im Innkreis and the restructuring plan will be voted on on February 25 – while these dates are set in stone in the course of the insolvency proceedings at KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH does, many other things are not fixed that day. This includes the start of the second wave of layoffs, which will begin in the coming days in the wake of the bankruptcy.
The next layoffs will now mainly affect employees
While it was initially feared that another 500 employees would lose their jobs, there are now a maximum of 300 employees who have to leave. This much seems clear: the next job losses will mainly hit the white-collar sector of the leading company.
It is possible that the production stop will be extended
By the beginning of December 2024, 250 employees had already been laid off – at the time, it was mainly employees who were laid off because after the production break, work was reduced from two shifts to one shift. Nevertheless, many of the 1,000 workers are still shaking because of the uncertain situation: it seems possible that the production stop, which was due to end at the end of February, will be extended until the end of March. The following applies to them for the time being: They stay at home and do nothing and receive wages for a 30-hour working week.
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.
