Severance Pay (Abfindung) at Brose – Job Cuts in Franconia 2026

Job cuts at Brose: the current situation

The Franconian automotive supplier Brose is restructuring heavily. Over the period from 2023 to the end of 2026, around 1,000 jobs will be cut in Franconia (Fränkischer Tag, 17 December 2025). Despite the cuts, the family-owned company had again been aiming for a profit in 2025; the annual results for 2025 were not yet available at the time of writing.

The trigger was a decision by the supervisory board on 9 December 2024 to cut indirect personnel costs worldwide by around 20% by 2027. This is driven by underutilised plants and cost pressure in the supply industry; in 2024, revenue stood at around €7.7 billion, with a net annual loss of around €142 million (inFranken.de, 18 December 2024; automobil-industrie.vogel.de, 2025).

The figures at a glance

• Around 1,000 jobs in Franconia over the period 2023 to the end of 2026.
• Around 700 jobs in Germany already by the end of 2025, of which roughly 520 in Franconia.
• Cost target: indirect personnel costs down 20% worldwide by 2027 (decision of 9 December 2024).
• Focus: administration and indirect functions.

Affected sites

The cuts are concentrated in Franconia (as of September 2026):

• Coburg (headquarters): around 200 jobs by the end of 2025.
• Bamberg/Hallstadt: around 200 jobs by the end of 2025.
• Würzburg: around 120 jobs by the end of 2025.

Source: inFranken.de, 18 December 2024.

Your rights in the business change

Job cuts on this scale count as a business change under section 111 BetrVG. The employer and works council must then negotiate a reconciliation of interests (covering the whether, when, and how) as well as a social plan under section 112 BetrVG. The social plan governs the severance payments and, if necessary via the arbitration board, is directly enforceable (section 112(4) BetrVG).

Separate from this is compensation for disadvantage under section 113 BetrVG: it relates to the reconciliation of interests, not the social plan. If the employer carries out the business change without having adequately attempted a reconciliation of interests with the works council, or deviates from it without compelling reason, affected employees can claim compensation for disadvantage (including severance pay).

There is, however, no general statutory entitlement to a specific severance payment. The common rule of thumb (0.5 gross monthly salaries per year of employment) is only a reference point, not an entitlement. If you are dismissed for operational reasons, the three-week deadline under section 4 KSchG applies from receipt of the notice for filing an unfair dismissal claim.

Received a termination agreement or severance offer? Get it checked first

Before you sign, we typically check:

• Is the severance payment calculated correctly (gross salary, years of employment, bonus components)?
• Are garden leave, remaining holiday, outstanding bonus entitlement, and reference letter properly settled?
• Is there a risk of a benefit suspension period for unemployment benefit (section 159 SGB III), or a suspension of the entitlement if the notice period is too short alongside severance (section 158 SGB III)?
• How does the one-fifth rule (section 34 EStG) apply? Since 1 January 2025, it is no longer applied by the employer but only via your tax return (assessment), and it requires a bunching of income.

Upload your document, and the critical points will be flagged, at no cost.

How it works with Team Abfindung

1. Free initial consultation: we review your offer or dismissal notice.
2. Engagement: litigation funding with no upfront payment.
3. Negotiation via our partner law firm MK Law.
4. Court claim if needed at the competent labour court.
5. Settlement or judgment: severance is usually agreed at the conciliation hearing.

Team Abfindung is a litigation funder and service provider, not a law firm; legal advice and representation are provided by our partner law firm (under the German Legal Services Act, RDG). Team Abfindung has no business relationship with Brose Fahrzeugteile SE & Co. Kommanditgesellschaft; the "Brose" name is used here solely for editorial context.