Bajaj Auto to slash workforce by over 50% at KTM

Bajaj Auto is set to implement major workforce reductions at KTM, cutting over 50 per cent of employees across multiple departments, including motorsport, research and development, marketing, operations, and administration. The move comes as Bajaj progresses toward completing its takeover of the Austrian motorcycle manufacturer.

The decision is part of a larger cost-optimization effort aimed at making KTM a leaner and more efficient organisation. The restructuring is expected to impact both KTM’s global operations and its teams associated with MotoGP racing.

Industry sources indicate that the reduction will primarily affect white-collar roles, which currently make up a significant portion of KTM’s workforce. Blue-collar employees, who are directly involved in production, are likely to see a smaller impact. KTM’s workforce had already been brought down from 6,000 to 4,000 employees by the previous management, but the new leadership at Bajaj Auto reportedly considers the number still high, particularly with a large portion in white-collar roles. The planned layoffs will largely focus on managerial and administrative functions, sparing factory workers.

The job cuts follow KTM’s recent financial struggles, attributed to overproduction amid slowing post-pandemic demand and diversification into unrelated ventures, such as electric bicycles. These challenges pushed the company toward insolvency, prompting Bajaj Auto — a long-time minority partner — to take a more active role in its management and restructuring.

With new leadership in place, including recently appointed finance and HR heads, the company aims to streamline operations, reduce overhead costs, and restore profitability. The restructuring marks a critical phase in Bajaj’s integration of KTM and reflects a broader trend of workforce optimization across global automotive and manufacturing sectors, including operations in India.