KTM Job Cuts 2026: Bajaj Mobility Lays Off 500 Employees

In a strategic shift, Bajaj Mobility AG announced last night that as part of their "efficiency program," around 500 jobs in Mattighofen—mostly in staff and middle management—will be cut. This move is aimed at slashing fixed costs and streamlining operations to bolster long-term competitiveness. Additionally, the product and project portfolio will undergo reevaluation, with the effects on the model lineup yet to be determined.

The management acknowledged the decision as "difficult but necessary," underscoring KTM's strategic pivot towards concentrating on its core motorcycle brands: KTM, Husqvarna, and GasGas.

Following the insolvency at the end of 2024, the Bajaj Group, a longstanding partner and now majority owner, seized control of KTM. The rebranding from Pierer Mobility AG to Bajaj Mobility AG signifies the completion of its integration into the Indian industrial giant. This strategic move aims to harness global synergies and expedite development processes, marking a new era for KTM.

Despite the job cuts, KTM made notable operational strides in 2025. Shedding over 100,000 motorcycles from inventory—a pivotal move in their restructuring strategy—sales surged in the latter half of 2025, with 80,464 units sold, marking a remarkable 60% increase over the first half.

At the same time, the company reported a decline of around 40% in e-bicycles and bicycles over the past year. Eventually, this led to the closure of the bicycle division. Additional key figures for Bajaj Mobility Group for the 2025 fiscal year will be released on January 29, 2026.

By the end of 2025, KTM's workforce had shrunk by about 1,500 employees compared to the previous year, with significant reductions in administration, management, and development. While production in Mattighofen remains intact for now, the company has already issued early warnings with the AMS (Austrian Public Employment Service). This move has stirred uncertainty locally, dashing hopes of a stable post-2025 restructuring future.

In a conversation with KTM Austria CEO Chris Schipper, he underscored that KTM views the current crisis as a prime opportunity for rejuvenation. Schipper stressed that KTM is committed to maintaining efficiency while preserving the brand's core DNA. The company remains steadfast in its dedication to producing sporty, character-rich motorcycles, all while ensuring that international delivery capabilities are robustly stabilized.

He also explained that the merger with Bajaj Mobility will open up new resources and production capacities in the long term—particularly for the mid-range series manufactured in Asia. KTM is currently working on streamlining the global model strategy while simultaneously bringing new, technically advanced platforms to market.

Despite the challenging situation, KTM isn't coming to a halt in 2026. Following the launch of the KTM 990 Duke R, the exclusive Brabus 1400 R and the KTM 1390 Super Adventure R 2026 are now available.

In the off-road segment, KTM continues to rely on its EXC range, which kicks off the 2026 season with new engines and a refined suspension setup. The KTM 300 EXC and 450 EXC-F stand out as highlights for enduro enthusiasts. With this model lineup, KTM demonstrates that despite restructuring, they remain committed to product development, aiming to keep the brand sporty and technologically robust in 2026 as well. We're excited for the season in orange.