The permanence of KTM may be threatened after a statement from one of the leaders of its newest owner, the Indian manufacturer Bajaj, which promises to make the Austrian brand regain its financial breath.
Bajaj’s Managing Director, Rajiv Bajaj, told CNBC-TV18 that the easiest cost cuts to implement are in “research and development, marketing (including motorsports), operations, and general administration”, giving the idea that these areas will be prioritized in the company’s cost reduction strategy.
“The previous management has already reduced the number of employees from 6,000 to 4,000, which is still considered too high,” he added.
“Curiously, out of these 4,000, only about 1,000 are workers; 3,000 are administrative, which is intriguing, since the workers manufacture the motorcycles. Future increases in production volume will impact the workers relatively lightly; the problem will be the high cost of administrative staff.”
“This reminds me of Mark Zuckerberg’s words about managers managing managers who manage managers who manage the people who do the work. The management overload and bureaucracy in this organization, which is otherwise excellent, were impressive.”
Bajaj’s comments will increase concern about the future of KTM’s project in MotoGP. KTM has a contract with its riders and with MotoGP until the end of 2026.
