A company in Japan studied the increase in business bankruptcies due to staff quitting. In the first seven months of 2025, 74 businesses shut down because employees left, a 60% rise from last year. It’s estimated that there might be over 100 such bankruptcies by the end of the year.
Industries like IT services, film production, and construction saw many bankruptcies due to employees quitting. For instance, a company that developed software went bankrupt in January because engineers were leaving the company, making it unprofitable. Likewise, a housing company faced troubles after key employees resigned, hurting sales and construction efforts. This trend hit other areas too, like manufacturing, transport, and wholesale sectors.
In addition, some companies became insolvent because they couldn’t offer good pay, leading employees to quit. With many businesses unable to raise wages due to poor financial performance, smaller companies may face more challenges in keeping staff. As a result, there might be more bankruptcies due to employees leaving in the future.
by MagazineKey4532