KTM’s new owners expect to halve costs by cutting white-collar jobs – Jalopnik

Indian motorcycle manufacturer Bajaj stepped in to save KTM earlier this year with a deal reportedly costing $900 million. The beleaguered Austrian giant owed its creditors more than $2.3 billion before 70% of the debt was forgiven as part of the insolvency deal. Although the acquisition is yet to be approved by the European Commission, Bajaj plans to cut overhead costs across the company by more than 50%, a drastic measure to make KTM a sustainable business.

Bajaj Auto managing director Rajiv Bajaj did not mince words when it came to criticizing past mismanagement at KTM during the manufacturer’s post-pandemic sales boom. The executive power told Indian television channel CNBC-TV18 in an interview earlier this month: “Interestingly, of the 4,000 people currently employed, there are only about 1,000 workers; 3,000 white-collar workers, which is mind-boggling because the workers make the motorcycles.” Bajaj added that the cost savings would focus on bureaucracy and management overhead, as well as white-collar jobs.

On the previous management structure, Bajaj also noted, “It reminds me of Mark Zuckerberg’s words about managers managing managers managing managers managing the people who do the work.” He is not making these comments out of thin air. KTM continued to release motorcycles despite demand declining after the pandemic. In December 2024, the Austrian manufacturer had 265,000 unsold bicycles in stock, good for a whole year’s worth of turnover.

While motorcycle enthusiasts may be happy that KTM can survive this financial crisis, there may be some unwanted victims. KTM’s factory MotoGP program will also be subject to the company’s cost savings. The racing program already had an uncertain future, with a potential end date of 2027 on the horizon. KTM is winless this season, but it could find its way to wins as long as promising sophomore Pedro Acosta remains in the stable. The 21-year-old Spaniard signs with KTM for the 2026 season, giving him the option to jump ship even if KTM chooses to stay in Grand Prix motorcycle racing.