Which SMA locations are affected?

The focus is on the headquarters in Niestetal in the Kassel district. SMA most recently employed around 3,800 people, of whom about 2,800 in Niestetal. According to reports, parts of the first round of cuts have already been implemented through dismissals during probationary periods and measures at the Polish subsidiary.

Why is SMA Solar cutting jobs?

The company cites a sharp downturn in the residential and commercial customer business in the US and Europe as the reason. SMA responded with a cost-cutting programme targeting €150 to 200 million annually. Revenue fell significantly in 2024.

Are operational dismissals being issued at SMA?

The works council (Betriebsrat) wanted to avoid operational dismissals wherever possible and relied on negotiations. Whether a dismissal occurs in an individual case depends on how things develop. Important: as soon as a dismissal is received, the three-week deadline under § 4 KSchG starts running, we review your case on a success basis, with no upfront cost.

SMA termination agreement (Aufhebungsvertrag): should I sign?

Not without a review. A termination agreement (Aufhebungsvertrag) can trigger a benefit suspension period (Sperrzeit) for unemployment benefit (§ 159 SGB III). We check whether the severance amount, release from work, remaining holiday and reference letter are properly regulated, and whether an unfair dismissal claim (Kündigungsschutzklage) could achieve more in your individual case.

What does it cost you?

The initial consultation comes at no upfront cost. If you engage us, we work through litigation funding (a legal service under the RDG), so there is no upfront cost risk. If successful, we keep a transparently agreed share of the severance pay. Legal representation is handled by our partner law firm MK Law.

Severance Pay (Abfindung) at SMA Solar: Your Rights During the Job Cuts

In November 2024, SMA announced it would cut around 1,100 jobs worldwide by the end of 2025, almost a quarter of all full-time positions worldwide; according to reports, around 700 of these at its headquarters in Niestetal. In October 2025 a second round of around 350 jobs worldwide followed (about 300 in Niestetal), with implementation planned from January 2026 (sources: t-online/dpa, November 2024; hessenschau, October 2025).

Reviewed by specialized labor lawyers · Updated: September 2026

The solar technology group SMA Solar (Niestetal near Kassel) has been in a deep sales crisis in its residential and commercial customer business since 2024 and is cutting jobs.

In November 2024, SMA announced that as part of a cost-cutting programme (target: €150 to 200 million annually) it would cut around 1,100 jobs worldwide by the end of 2025, almost a quarter of all full-time positions worldwide; according to reports, around 700 of these at its headquarters in Niestetal.

In October 2025 a second round followed: around 350 further jobs worldwide, of which about 300 in Niestetal; implementation was planned from January 2026.

SMA most recently employed around 3,800 people, of whom about 2,800 in Niestetal. The works council (Betriebsrat) wanted to avoid operational dismissals wherever possible.

An automatic statutory right to severance pay (Abfindung) exists only in exceptional cases. If you are dismissed, the three-week deadline (§ 4 KSchG) applies.

We review your offer or dismissal on a success basis, with no upfront cost.

Job Cuts at SMA Solar: Current Situation

The solar technology group SMA Solar from Niestetal near Kassel has been in a deep sales crisis since 2024. The market collapsed in particular in the residential and commercial customer business in the US and Europe. SMA responded with a cost-cutting programme and announced in November 2024 that it would cut around 1,100 jobs worldwide by the end of 2025 (t-online/dpa).

In October 2025 a second round of cuts followed, around 350 jobs, of which about 300 at the headquarters in Niestetal; implementation was planned from January 2026 (hessenschau).

The Numbers at a Glance

Around 1,100 jobs worldwide by the end of 2025 (announced November 2024), almost a quarter of all full-time positions worldwide; according to reports around 700 in Niestetal.
Around 350 further jobs in the second round (announced October 2025), of which about 300 in Niestetal; implementation planned from January 2026.
Cost-cutting target: €150 to 200 million annually.
Employees: most recently around 3,800 group-wide, of whom about 2,800 in Niestetal.

As of: September 2026. Figures based on publicly available reports (as of the announcements: November 2024 and October 2025 respectively).

Your Rights at a Glance

Important to note upfront: an automatic statutory right to severance pay (Abfindung) exists only in exceptional cases (for example, with an offer under § 1a KSchG). As a rule, severance pay arises from negotiation, a social plan, or a settlement. These points are central:

Social plan: A social plan (§§ 111, 112 BetrVG) is directly enforceable via the arbitration board (Einigungsstelle) (§ 112(4) BetrVG), meaning the works council (Betriebsrat) can enforce it.
Compensation for disadvantage: If the employer deviates from the agreed reconciliation of interests without compelling reason, a claim for compensation for disadvantage may arise under § 113 BetrVG. This is linked to the reconciliation of interests, not to the social plan.
Filing deadline: You must file an unfair dismissal claim (Kündigungsschutzklage) within three weeks of receiving the dismissal (§ 4 KSchG). After that, the dismissal is deemed effective.
Unemployment benefit: A termination agreement (Aufhebungsvertrag) can trigger a benefit suspension period (Sperrzeit) (§ 159 SGB III). This is distinct from the suspension of the claim when severance pay is paid without observing the notice period (§ 158 SGB III).
Tax: The one-fifth rule (Fünftelregelung) (§ 34 EStG) can reduce the tax burden on severance pay if there is a concentration of income. Since 1 January 2025, it is no longer applied via payroll but only in the income tax assessment.

The common rule of thumb (half a gross monthly salary per year of employment) is only a reference value, not an entitlement, actual severance payments achieved can be significantly higher or lower.

Review Your Offer

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

Is the severance pay calculated correctly (gross salary, years of employment, bonus components)?
Are release from work, remaining holiday, residual bonus entitlement and reference letter properly regulated?
How does accepting affect unemployment benefit (benefit suspension period under § 159 SGB III), pension and tax (one-fifth rule)?
Is a social plan entitlement more favourable than the voluntary offer?

If You Are Dismissed

If SMA issues an operational dismissal, the three-week deadline under § 4 KSchG applies. At a company with a works council, the prospects of success for an unfair dismissal claim are generally good, the proceedings often end with a severance payment as part of a settlement. The Kassel Labour Court is usually responsible for the Niestetal location.

Our Process at Team Abfindung

Initial consultation at no upfront cost: we review your offer or dismissal.
Engagement: litigation funding with no upfront payment (RDG).
Negotiation through our partner law firm MK Law.
Court proceedings if necessary at the Kassel Labour Court or the competent court.
Settlement or judgment, usually severance pay at the conciliation hearing.

Note: Team Abfindung is an independent service provider and has no business relationship with SMA Solar Technology AG. All information on the job cuts is based on publicly available reports (as of: September 2026).

Frequently asked questions