The motorcycle and bicycle manufacturer Pierer Mobility with core brand KTM announced on Friday evening that it would cut 200 additional jobs in the third quarter, the majority in Austria. The administration area is primarily affected, not production, it said on request. The reason is a weak first half of the year: sales fell from 1.4 to 1.007 billion euros. The operating result (EBIT) was negative at 195 million euros (2023: plus 97 million euros). The main factor was the bicycle sector (minus 117 million euros). EBIT in the motorcycle sector was minus 78 million euros.
373 fewer employees so far
The company cites declining sales, especially in the important US market, the difficult overall economic situation and high personnel and production costs in Europe as reasons. With the cost-cutting program, Pierer Mobility hopes to achieve a turnaround in the second half of the year. A reduction in production volumes by a quarter should relieve the burden on the product pipeline and dealer warehouses. The loss-making bicycle division is being restructured and the focus is on the premium segment: This development was initiated in 2023 and is expected to be completed this year.
At the end of June, 6,024 people were employed, 4,712 in Austria. 373 jobs were cut in the first half of the year, 309 in Austria. The group expects better figures for the second half of the year due to the cost-cutting measures. Sales for the full year are expected to be ten to 15 percent lower than in 2023 (2.6 billion euros). The early takeover of the luxury brand MV Agusta added 213 employees. EBIT in the motorcycle division is expected to be balanced to slightly positive for the full year, while that in the bicycle division is expected to be significantly negative at minus 110 to minus 130 million euros.
