Just a few hours ago, Stefan Pierer, CEO of KTM, and Gottfried Neumeister, Co-CEO of KTM, addressed the company’s more than 5,000 employees today to unveil a comprehensive plan focused on overcoming current financial challenges and ensuring a solid future for the brand. A fact that was seen coming a few months ago after the latest movements of the company in general terms.
A year of adjustments at KTM
It was last December when the first alarm went off within the business network that makes up the famous Pierer Mobility group. Then it was announced that 300 employees would be laid off and that the company would move the bulk of its production to Asia. Later, in July of this same year, the announcement of new layoffs was repeated after a drop in sales and an increase in costs.
Two months later, last September, the layoffs by the Austrian company continued and shortly after it was announced that its board of directors was reducing the number of positions from 6 to 2. In this way, only the CEO Stefan Pierer and co-CEO Gottfried Neumeister will retain their position, the same ones who are now announcing this comprehensive restructuring plan.
About it, Stefan PiererCEO of KTM AG, said: “Over the last three decades, we have grown to become the largest motorcycle manufacturer in Europe. With our products we inspire millions of motorcyclists around the world. Now it’s time to make a pit stop to prepare for the future. The KTM brand is my life’s work, and I will fight for it.”
KTM, which has grown from 160 employees and a production volume of 6,000 units in 1992 to a production capacity of up to 1,000 motorcycles per day, is now facing significant obstacles. To address them, KTM will initiate a legal restructuring procedure with self-administration. The application will be submitted on Friday, November 29, with the aim of completing the process within 90 days.
From September 2024, Gottfried Neumeister has joined the Executive Committee as Co-Director General. Regarding this fact, Stefan Pierer explains: “Gottfried Neumeister has brought impressive experience and an important breath of fresh air, contributing significantly to addressing the current situation. I am convinced that together we will get the company back on track on the path to success.”
For his part, Gottfried Neumeister, Co-CEO of KTM AG, said: “The enthusiasm of our employees is our most important competitive advantage. His passion is the reason why KTM is synonymous with maximum performance around the world. We build our bikes reliably and robustly to win every race and overcome every terrain. Now it’s about making the company robust. Robust for the future. So we can quickly refocus on what we do best: building the coolest bikes in the world.”
Pierer and Neumeister highlighted the importance of employee engagement and support during this period: “Together we have made KTM a success story and together we will take KTM into the future.” We will see what the brand’s next movements are with the arrival of 2025 under the new restructuring plan that they have launched.
