Ktm's New Owners Expect To Halve Expenses By Slashing White-collar Jobs

KTM

Indian motorcycle shaper Bajaj swooped successful earlier this twelvemonth to rescue KTM pinch a woody rumored to costs $900 million. The beleaguered Austrian elephantine owed over $2.3 cardinal to its creditors earlier 70% of nan indebtedness was forgiven arsenic portion of its insolvency deal. While nan takeover has yet to beryllium approved by nan European Commission, Bajaj is readying to trim overhead expenses by complete 50% crossed nan full company, a drastic measurement to make KTM a sustainable enterprise.

Rajiv Bajaj, nan managing head of Bajaj Auto, didn't mince words erstwhile it came to criticizing erstwhile mismanagement astatine KTM during nan manufacturer's post-pandemic income boom. The executive told Indian tv transmission CNBC-TV18 successful an question and reply earlier this month, "Interestingly, of nan 4,000 group presently employed, only astir 1,000 are blue-collar; 3,000 are white-collar, which is perplexing because nan blue-collar labor make nan motorcycles." Bajaj added that cost-cutting would attraction connected bureaucracy and guidance overhead, arsenic good arsenic white-collar jobs.

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On nan erstwhile guidance structure, Bajaj besides noted, "It reminds maine of Mark Zuckerberg's words astir managers managing managers managing managers who negociate nan group who do nan work." He isn't pulling these comments retired of bladed air. KTM continued to pump retired motorcycles contempt nan post-pandemic request fading. By December 2024, nan Austrian shaper had 265,000 unsold bikes successful its inventory, an full year's worthy of sales.

While motorcycle enthusiasts mightiness beryllium happy that KTM could past this financial crisis, location could beryllium a fewer unwanted casualties. KTM's mill MotoGP programme will besides beryllium taxable to nan company's costs cuts. The racing programme already had an uncertain future, pinch a imaginable 2027 extremity day connected nan horizon. KTM is winless this season, but it could find its measurement to wins arsenic agelong arsenic promising sophomore Pedro Acosta remains successful its stable. The 21-year-old Spaniard is signed to KTM done nan 2026 season, giving him nan action to jump vessel moreover if KTM chooses to enactment successful Grand Prix motorcycle racing.