Pierer Mobility announces more layoffs, names new Co-CEO
Pierer Mobility, the parent company of KTM, Husqvarna, and GasGas and the majority owner of MV Agusta announced further layoffs in response to poor sales performance in 2024.
The company, which has been saddled with high debt and soft sales this year, plans to cut another 200 jobs in Q3, adding to the 373 layoffs already since the beginning of the year.
Pierer Mobility now has 6,024 employees, following the consolidation of MV Agusta, which added 213 new workers to the company.
Pierer Mobility, reacting to the soft sales, has implemented several measures, including transferring some production to India and China and cutting production by 25% for the remainder of the year. The company claims these actions will get it back on track by 2025.
For the first half (H1 24) Piere Mobility generated revenue of €1,007 million (-27%). Around 93% of this was attributable to the motorcycle segment and 7% to the bicycle segment. Around 61% of revenue was generated in Europe, 27% in North America (USA, Canada, Mexico) and 12% in other countries.
In the motorcycle segment, the company’s board assumes that the cost savings introduced in the current financial year will compensate for the negative effects of declining sales so that a balanced to slightly positive EBIT can be generated. According to the report, developing existing dealers and expanding the dealer network to support the brand strategy will be key issues in 2024.
The company described the global motorcycle market as ‘challenging,’ pointing only to Europe, its largest market, and India as regions with ‘slightly positive’ and ‘positive’ performance. In contrast, North America, Australia, and China were classified as ‘declining’ markets for the company in 2024.
Meanwhile, the group also announced a new executive has joined the company. Gottfried Neumeister took over the role of Co-CEO at Pierer Mobility AG and KTM AG on September 1, 2024.
“I am delighted to welcome Gottfried Neumeister, an experienced and highly successful top manager. He will provide fresh impetus and increasingly take responsibility for tasks from my portfolio,” comments Stefan Pierer, CEO of Pierer Mobility.
“I am delighted to be taking a piece of Austria out into the world with over 6,000 great people. The team at Pierer Mobility AG has proven over the years that it is one of the best in the world through innovation and performance. When I think of Pierer Mobility/KTM, attributes such as emotion, passion and performance come to mind, coupled with the will not to stand still, but to constantly strive for improvement and perfection. This makes me all the more happy to be part of this community,” says Gottfried Neumeister.
