EU lawmakers have approved €1.8 million in funding to help 420 workers in Austria who lost their jobs after motorcycle maker KTM halted production in April 2025.
MEPs backed the European Commission’s proposal to draw the money from the European Globalisation Adjustment Fund for Displaced Workers (EGF), which provides EU support after major job losses linked to large restructuring events, the European Parliament announced on Thursday.
The report was adopted with 584 votes in favour, 39 against and 13 abstentions.
A wider €3 million package will offer career counselling, job-search help, skills training and training allowances, with the EU covering 60% and Austria’s public employment service providing the remaining 40%.
Why KTM jobs were cut
KTM faced financial losses and a drop in sales in 2024, while supply chain disruptions led to insolvency proceedings and production stopping in April 2025, the European Parliament said.
The company later secured funding, avoiding bankruptcy and allowing production to resume under cost-saving measures.
Under the EGF rules for 2021 to 2027, EU countries can apply for support when at least 200 workers are made redundant within a set period, with funding proposals requiring approval by the European Parliament and the Council.
