It’s not a secret that KTM is in deep financial trouble. The Austrian motorcycle manufacturer is nearly $3 billion in debt and entered self-administration in late November. KTM is reportedly planning to shut down its entire MotoGP division in 2026. This would include its four-bike top-class effort along with its Moto2 and Moto3 programs. The racing division’s demise is projected to save KTM $47.7 million annually.
Racing programs are typically the first things to go once any vehicle manufacturer hits financial hardship. The administrator stated that KTM spent a staggering $98.6 million on its racing program in 2023. The bikemaker is finding ways to continue racing for now while slashing its spending, like outright halting development on its MotoGP bike. Viennese newspaper Der Standard outlined the drastic action that KTM is making in other areas to survive:
The restructuring plan includes short-term measures that are to take effect before February 25. This includes the layoff of 391 employees between January and February, with the “immediate savings” coming from early departures. Further on the list: a reduction in working hours to 30 hours a week for 83 percent of the workforce in January and February, and this measure may be extended to March. The production stoppage until the end of February could be extended by four weeks.
KTM’s management hopes that a 2026 departure would limit the inevitable PR damage by allowing time for a proper farewell. The planned end date would also align with the end of its contract with Dorna, MotoGP’s commercial rights holder. The only guaranteed way that KTM’s MotoGP program will survive beyond 2026 is if it’s purchased by a new owner. While executives have confirmed that it’s in talks with several potential investors, including seven-time F1 champion Lewis Hamilton, a complete takeover seems unlikely.