Bajaj Mobility AG, formerly known as PIERER Mobility AG, has announced significant restructuring measures as part of an efficiency program designed to strengthen the long-term competitiveness of KTM AG. The company confirmed that approximately 500 employees, primarily in salaried positions and middle management, will be affected by workforce reductions. This decision follows KTM AG's insolvency at the end of 2024 and subsequent successful restart in 2025.
The company's headcount stood at 3,794 employees as of December 31, 2025, according to official figures. CEO Gottfried Neumeister described the reduction as a difficult but necessary decision to lower costs, streamline structures, and establish a stable foundation for the company's future. "We are reducing complexity across all areas - for example in our model range, in IT, and also in the organization of our departments, particularly by removing one management layer," Neumeister stated.
All restructuring measures focus specifically on the Motorcycles segment, which includes the three core brands KTM, GASGAS, and Husqvarna. The company has already taken several steps toward realignment in 2025, including divesting its bicycle business through the sale of FELT Bicycles, terminating distribution of CFMOTO, and selling MV Agusta and X-Bow operations. These moves represent a strategic shift toward simplification and focus within the motorcycle manufacturing sector.
Bajaj Mobility AG has submitted required early warning notifications pursuant to Section 45a of the Austrian Labor Market Promotion Act to the competent Public Employment Service. The company aims to reduce fixed costs, streamline organizational structures, focus its product and project portfolio, and optimize its international site and leadership network through these measures.
With Bajaj Auto International Holdings B.V. as majority shareholder, Bajaj Mobility AG maintains solid financial backing to support the restructuring process both in Austria and globally. This partnership signals continued commitment to positioning KTM as a strong international brand. The company achieved notable success in 2025 with 29 championship titles in motorsport competitions, demonstrating the brand's competitive capabilities despite financial challenges.
Customer and dealer confidence in KTM showed positive signs in the second half of 2025, with inventory reductions occurring faster than expected due to strong market demand. The company anticipates economic improvements in 2026 through consistent implementation of cost reduction measures. Additional information about the company and its operations is available through its official website at https://www.bajajmobility.com.
The restructuring represents a significant development in the European motorcycle industry, potentially influencing competitive dynamics among premium manufacturers. For affected employees, the workforce reduction marks a challenging transition, while for the company, it represents a strategic move toward sustainable operations. Industry observers will monitor how these efficiency measures impact KTM's market position and whether the simplified structure enables the company to regain its status as one of the world's leading motorcycle manufacturers.
