The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.10 - Manufacture Of Motor Vehicles
200 - 2,380 jobs Number of planned job losses
Announcement Date
29 November 2024
Employment effect (start)
1 January 2025
Foreseen end date
Description
The Austrian motorcycle manufacturer KTM AG, headquartered in Mattighofen, has filed for insolvency, citing liabilities of approximately €2 billion. The proceedings will affect all the 2380 employees, with 200 layoffs planned in the first month and 200 more in the second. The insolvency was triggered by rising costs, declining consumer demand, and excess inventory worth €1 billion. The company also applied for insolvency in two KTM subsidiaries: KTM F&F and KTM Components.
While KTM had achieved record revenues of €2 billion and a net profit of €109 million in 2023, critics have questioned recent acquisitions, dividend payouts, and the acceptance of government pandemic support. Political figures and creditors have voiced concerns over the management's decisions.
The state of Upper Austria has convened a roundtable with social partners, including unions and the AMS, to explore support measures for affected workers. KTM aims to restructure under a sanitation plan, offering creditors 30% repayment within two years. Despite the challenges, stakeholders hope to secure KTM's future through strategic downsizing and financial restructuring.
The Upper Austrian Labour Market Service is prepared to support KTM employees who could lose their jobs.
Eurofound (2024), KTM, Bankruptcy in Austria, factsheet number 202026, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/202026.
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