Should I accept the Siemens termination agreement offer?

That depends on your age, length of service, your chances in an unfair dismissal claim (Kündigungsschutzklage), and your prospects afterwards. Because compulsory redundancies are ruled out, you hold the stronger position: you do not have to accept an offer. At the same time, Siemens is currently paying extra for voluntary departures, and these terms will not necessarily be available later. We assess in a free initial consultation whether accepting, renegotiating, or staying is the better option for you.

Who is particularly affected by the Siemens job cuts?

The focus is on the automation division, Digital Industries, where around 5,600 jobs worldwide and about 2,600 in Germany are set to be cut by the end of September 2027 (source: ZDFheute, 18.03.2025). By the end of September 2025, around 450 jobs worldwide in the charging solutions business (Smart Infrastructure / eMobility) had already been cut, of which around 250 in Germany.

What happens to my unemployment benefit if I sign?

A termination agreement (Aufhebungsvertrag) can trigger a 12-week benefit suspension period (Sperrzeit) under § 159 SGB III if no important reason is documented, and an end date set before the expiry of the statutory notice period can cause your entitlement to be suspended (§ 158 SGB III). Both of these can be managed through how the agreement is worded. Tax also needs to be factored in: the one-fifth rule (Fünftelregelung) and the timing of payment can make a difference of four to five figures on larger packages.

What does advice from you cost?

The initial consultation comes at no cost. If you engage us, we work on a success basis backed by litigation funding, so you carry no financial risk upfront.

Severance Pay at Siemens 2026 – Job Cuts, Termination Agreement & Your Rights

Q: Can Siemens dismiss me for operational reasons?

In Germany, dismissals for operational reasons are largely ruled out thanks to site and employment security agreements. Siemens has reached agreement with employee representatives on the job cuts and set up a transformation fund for this purpose (source: Handelsblatt). As a result, the job cuts have to proceed through voluntary schemes, which strengthens your negotiating position, since Siemens needs your signature.

Siemens has not published a general severance formula. Since the job cuts are being handled through voluntary schemes and termination agreements (Aufhebungsverträge), the amount is negotiable on a case-by-case basis. A common reference value is the rule of thumb of 0.5 monthly salaries per year of employment, though there is no automatic entitlement to this. As a purely illustrative calculation: €5,500 gross and 12 years of service would work out to around €33,000 under this formula. We will assess with you what is realistically negotiable in your case.

Reviewed by specialized labor lawyers · Updated: September 2026

In March 2025, Siemens announced the cutting of around 6,050 jobs worldwide, of which roughly 2,850 in Germany (source: ZDFheute, 18.03.2025).

The automation division (Digital Industries) is most affected: around 5,600 jobs worldwide, including approximately 2,600 in Germany, are set to be cut by the end of September 2027.

By the end of September 2025, around 450 jobs in the charging solutions business (Smart Infrastructure / eMobility) had already been cut, of which around 250 in Germany.

Compulsory redundancies in Germany are largely ruled out due to site and employment security agreements. Siemens has reached agreement with employee representatives on the job cuts and set up a transformation fund (source: Handelsblatt).

Because the cuts must go ahead without forced dismissals, the amount of any termination offer is negotiable. The rule of thumb (0.5 monthly salaries per year of service) is only a reference value, not a legal entitlement.

We review your offer at no upfront cost, on a success basis, backed by litigation funding, with no financial risk to you upfront.

Job cuts at Siemens: what is happening?

In March 2025, Siemens announced it would cut around 6,050 jobs worldwide, of which roughly 2,850 in Germany (ZDFheute, 18.03.2025). The focus is on the automation division Digital Industries: around 5,600 jobs worldwide, including about 2,600 in Germany, are set to be cut by the end of September 2027. By the end of September 2025, around 450 jobs in the charging solutions business (Smart Infrastructure / eMobility) had already been cut, of which around 250 in Germany.

Your rights: social plan, termination agreement, dismissal protection

For a business change of this scale, the employer must negotiate a social plan (Sozialplan) with the works council (Betriebsrat) under §§ 111, 112 BetrVG. This sets out compensation for economic disadvantages, such as severance pay, partial retirement schemes, and transfer arrangements. If a business change is carried out without an attempt to reach an agreement of interests (Interessenausgleich) with the works council, a disadvantage compensation claim may be possible (§ 113 BetrVG). However, a social plan only sets a framework: an individually offered termination agreement can fall below or above it and is negotiable.

If a dismissal for operational reasons does happen later on, the strict three-week deadline applies: an unfair dismissal claim (Kündigungsschutzklage) must be lodged with the labour court within three weeks of receiving the dismissal notice (§ 4 KSchG), after which the dismissal is deemed valid, regardless of how questionable it was. At a large employer like Siemens, this very claim is often the lever that first opens the door to negotiating severance pay.

No pressure to dismiss you, what this means for you

In Germany, dismissals for operational reasons are largely ruled out thanks to site and employment security agreements, although such agreements can contain opt-out clauses. Siemens has reached agreement with employee representatives on the job cuts and set up a transformation fund for this purpose (Handelsblatt).

For those affected, this means: you are not under pressure of dismissal, and you do not have to accept a termination agreement offer. Because Siemens still needs to reach its targets, the company is paying for voluntary departures. That is your negotiating position. An offer that looks "generous" is not automatically the maximum on the table, so it's worth having it checked.

Received a Siemens offer? Check it before you sign

Things to check include: the amount relative to your age, length of service, and chances in a claim, the risk of a benefit suspension period (Sperrzeit) for unemployment benefit (§§ 158, 159 SGB III), the waiver and settlement clauses (bonuses, variable pay, company pension), and the tax treatment: for larger packages, the timing of payment can determine whether the one-fifth rule (Fünftelregelung) applies. Upload your document and we will flag the critical points, at no cost.

How we work with you

A free initial consultation, an assessment of your offer by our specialist partner law firm, and, if you engage us, negotiation backed by litigation funding, with no financial risk to you upfront. Find out how the cost model works.

Please note: Team Abfindung is an independent provider and has no affiliation with Siemens AG.

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