KTM is to receive 1.8 million euros from the EU globalization fund

KTM announced three weeks ago to lay off another 500 employees.

Money from the EU globalization fund for KTM

Brussels wants career advice and guidance, support with the Job search, further training and training grants finance. The estimated total costs of these measures amount to 3 million euros, 60 percent of which the Commission wants to cover and 40 percent (1.2 million euros) the Austrian employment office. The Austrian authorities began supporting workers through the fund as early as March 2025; these costs can be paid retroactively. The EU Parliament and the Council of Member States still have to approve the Commission’s proposal. Then the funds can flow.

KTM and its subsidiaries KTM Components and KTM R&D filed for bankruptcy in November 2024, followed by a production stop at KTM in December and then a restructuring process and the takeover by the Indian shareholder Bajaj. The EU Commission gave the green light for the takeover of control in November 2025. For the further ones that have now taken place Wave of layoffs A social plan and a hardship fund were set up.

Fund can be activated for more than 200 laid off people

The aim of the EGF is to support low-skilled and disadvantaged job seekers in meeting new challenges in the labor market. The EGF can be activated if an individual company (including its suppliers and downstream producers) lays off more than 200 employees.

The fund has an annual budget of 35 million euros for the period 2021-2027. It can finance 60 to 85 percent of the cost of projects aimed at helping laid-off workers find new jobs or start their own businesses.