Severance Pay (Abfindung) at Infineon: Job Cuts, Social Plan & Your Rights

Job cuts at Infineon: the current situation

The semiconductor group Infineon plans to cut around 500 jobs at its Belecke plant (Warstein), a move that became known in early November 2025. Around 500 jobs are also set to go at the Regensburg site. The IG Metall trade union called it a "clear-cut" (finanznachrichten.de; VDI-Nachrichten).

Both moves are part of the group-wide savings programme "Step Up": since 2024, Infineon has planned around 1,400 job cuts and around 1,400 relocations to lower-cost countries worldwide. The company cites weak demand, lowered growth expectations and overcapacity, particularly in automotive power semiconductors, as the reasons.

Team Abfindung is an independent provider and has no connection to Infineon Technologies AG. We represent solely the interests of affected employees.

The figures at a glance

• Around 500 jobs at the Belecke plant (Warstein), known since November 2025.
• Around 500 jobs at the Regensburg site (announced in 2024).
• Group-wide programme "Step Up" since 2024: around 1,400 jobs cut and around 1,400 relocated worldwide.
• Focus area: automotive power semiconductors, relocation to lower-cost countries.
• Implementation without operational dismissals where possible.

As of: November 2025 (sources: finanznachrichten.de/ntg24; VDI-Nachrichten). Figures may change as the programme progresses.

Works council & social plan

In the event of an operational change, the employer and the works council (Betriebsrat) negotiate a reconciliation of interests (Interessenausgleich, covering the whether, when and how) and a social plan (Sozialplan, covering compensation for economic disadvantages) under §§ 111, 112 BetrVG. The social plan is a works agreement with direct legal effect; if no agreement is reached, it can be enforced through the conciliation committee (Einigungsstelle) (§ 112 (4) BetrVG).

This is separate from the compensation for disadvantages under § 113 BetrVG: this applies if the employer carries out an operational change without having attempted a reconciliation of interests with the works council, or deviates from it without compelling reason. In that case, affected employees can claim severance pay before the labour court.

Important for you: a social plan is a framework agreement; the individual offer put to you must correctly implement the social plan in your specific case. That is exactly what we check.

Checking a voluntary offer

Before you accept a termination agreement or voluntary offer, we typically check:

• Is the severance amount calculated correctly (gross salary, years of service, bonus components)?
• Are release from duties, remaining holiday, outstanding bonus entitlements and your reference letter properly regulated?
• How does accepting it affect unemployment benefit (ALG I)? A termination agreement can trigger a benefit suspension period (Sperrzeit, § 159 SGB III); if severance is paid without observing the notice period, your claim can additionally be put on hold (§ 158 SGB III).
• What remains net after tax? For severance payments, the one-fifth rule can reduce the tax burden.
• Would a transfer company be a better option than immediate severance?

There is no automatic, general right to severance. As a rough guide, the rule of thumb of 0.5 to 1.0 gross monthly salaries per year of employment applies, a reference value, not a guarantee. With a social plan, figures are often higher.

If you are dismissed after all

Should Infineon issue an operational dismissal, the three-week deadline under § 4 KSchG applies: an unfair dismissal claim (Kündigungsschutzklage) must reach the labour court within three weeks of receiving the dismissal notice. In a co-determined operation with strong IG Metall representation, the prospects of success are generally good, and proceedings often end with severance pay agreed in a settlement.

How we work with you

1. Initial consultation at no upfront cost: we review your offer or your dismissal.
2. Instructing us: litigation funding with no upfront payment.
3. Negotiation through our partner law firm, MK Law.
4. Claim if necessary at the relevant labour court.
5. Settlement or judgment, usually severance agreed at the initial hearing.