Sometimes things are not as they appear from the outside or do not work from the perspective we may think. That is why it is shocking that since this time last year, Pierer Mobility, owner of KTM, GASGAS, Husqvarna and majority shareholder of MV Agusta, has been announcing layoffs since shortly after.
In addition to what we have already seen in recent months, we should add what they have considered “a new significant reduction in costs” during the third quarter of 2024 and that implies the departure of more staff, taking into account that they expect a drop in income of between 10% and 15%.
Pierer Mobility has fewer employees than in 2023
A complicated fall to manage and which has meant that Pierer Mobility has already gone from having 6,314 employees in June 2023 to 6,024 employees on 1 June 2024, all this after having incorporated 213 MV Agusta employees into its workforce.
In total, Pierer Mobility says it has laid off 373 employees so far in 2024 and, as we said, the Austrian company will continue to increase that number in the coming months. In addition to the economic forecasts we mentioned earlier, we must add the outsourcing of some of its products to China and India thanks to the alliance with other manufacturers who, in turn, have their own interests.
A particularly difficult situation for all employees at one of the leading companies, especially when it comes to off-road motorcycles. In fact, it seems that even though they are not at the usual level in terms of sales at the moment, this is the part that is still performing best. However, the situation seems more complicated with regard to road motorcycles, which have become a fundamental pillar of Pierer Mobility’s economy.
We will have to wait for future information to find out whether these latest layoffs mark the end of a period of decline within the Austrian company or whether, on the contrary, they are merely part of a much longer process that will seek to return the greatest possible economic profitability to the brand and its shareholders.
