In order to improve business results, Pierer Mobility, in addition to job cuts, plans to reduce production volumes by around 25% in 2024 and streamline product development. In addition, the loss bike division will be further restructured.
In the bicycle segment, the restructuring of the balance sheet should be completed by 2024, as the company emphasizes. “This will result in an extraordinary additional devaluation requirement that is higher than originally anticipated”. A reduction in the cost structure in the core business has largely been implemented. “In 2025 the change in size of the entire cycle area will continue steadily. The aim is to continue operating the bike sector profitably with a business model focused on niches and premiums.”
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In recent months, KTM has made far more extensive job cuts than originally announced. Although there was talk of 300 jobs in production in March, an additional 120 jobs were cut in the research and development department. These measures are part of a comprehensive restructuring related to the relocation of production to Asia. According to CFO Viktor Sigl, the steps were necessary to reduce costs and ensure long-term competitiveness.