The severance packages offered to employees at Viessmann Climate Solutions mark a significant turning point for the North Hesse region. The heating market is in a sales crisis. Despite booming demand for heat pumps, operating profit is falling from $129 million to $120 million. The market for conventional heating systems has collapsed – a drastic market downturn is exacerbating the situation. At the same time, the company is calling for government support to safeguard economic activity in Germany and prevent further job losses. A voluntary severance program is intended to significantly reduce personnel costs. (hna: 06.11.25)
Severance packages as a last resort
The major US carrier is responding to the situation with a drastic measure: In selected regions, Viessmann is offering severance packages to streamline its workforce. The compensation is calculated based on salary and length of service. Sales, service, and development departments remain unaffected. However, the job cuts primarily affect the production areas – a harsh blow for the workforce in Northern Hesse, which relies on stability.
The market for heating boilers in Germany is shrinking faster than the heat pump sector is growing. Thomas Heim from Viessmann is therefore advocating for targeted support of the domestic mechanical engineering industry. Without political support, there is a risk of losing strategic competitive advantages.
Heat pump boom is not enough
Although sales of heat pumps increased by 45 percent, the decline in traditional systems outweighs this growth. “The market is shrinking faster than we are growing,” the management explains. Internal cost-cutting measures such as material reductions and sabbatical leaves only provide short-term relief. The introduction of severance packages demonstrates how serious the situation is considered to be. There is also talk internally of a one-time bonus payment.
Heim emphasizes that without targeted investments in German heating systems, know-how and technological leadership will be lost. International competition is increasing the pressure on domestic manufacturers.
Market downturn triggers upheaval
The German Heating Industry Association (BDH) reports the weakest heating market in 15 years: In the first half of 2025, sales fell by 22 percent to 296,500 units. The market slump is affecting not only companies but entire regions. The severance packages offered by Viessmann are intensifying an atmosphere of uncertainty. Many employees are considering voluntary departure only due to a lack of alternatives.
The structural adjustments also hold potential: Those who remain are increasingly finding themselves in future-oriented areas such as service and development. The transformation brings opportunities, but the transition is proving difficult – for employees, companies, and locations alike.