MotoGp, financial crisis for KTM: program not at risk, but staff cuts

Bologna, 21 November 2024 – Economic and financial crisis for KTM and significant reduction in staff: a delicate situation for the Austrian giant. The motor asset of Pierer Mobility AG is experiencing a difficult moment and with heavy losses due to the collapse of sales, so the company has had to undertake a cost-cutting policy but which should not have a major impact on the Moto GP sector. For some time, KTM is cutting jobs and will cut more. Motorcycle production needs to be significantly reduced and inventories reduced, so after 300 employees were cut at the beginning of 2024, a further cut of 200 was undertaken in the summer and another 300 will soon be sent home. All with reduced hours and a drastic drop in motorcycle production to allow inventory to be used up. The decision was made following a crisis that caused total turnover to drop by almost 30%, with the need to find three-figure financing to fix the accounts.  

Moto GP program not at risk. Acosta visited the factory

KTM's balance sheets are going through a very complicated period, so much so that the company has to undertake drastic policies to review expenses following the decline in sales of both motorcycles and electric bikes. The debt has in fact grown and gone from 300 million in 2022 to a billion and a half in 2024 (source Motorsport.com) and the shares have also plummeted with a worrying minus 90%. Among KTM's assets, the commitment in Moto GP is the most expensive and the downsizing policy should precisely safeguard the presence of the Austrians in the world championship. The program remains in place and the contract with Dorna expires in 2026 and no early exits are expected, but there could certainly be an impact on the development of the bike. KTM in fact it dropped in the second part of the season, despite having been the first after the pilots Ducati (Binder fifth in the standings ahead of Acosta) and second in the constructors' championship, a sign that it represents Borgo Panigale's first rival. Will the project be able to continue to grow despite the economic crisis? Aprilia is eager to move up a level and has signed the reigning world champion, while the Austrians have promoted Acosta from the Gas Gas team to the official one and from 2025 the brand will disappear to become totally KTM with the Red Bull colors on all four bikes. New riders have also arrived such as Vinales e bastianini and to date reassurances are leaking out that there will be no repercussions on the competitive side, even if there are reductions in the Dakar. Not only that, Pedro Acosta in the summer he wanted to visit the Austrian factory, to understand the development and project line, and he was reassured about the continuation of investments in Moto GP.

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