German businesses face succession crisis and toxic culture risks

German businesses are facing significant structural challenges regarding leadership and organizational health. In the Mittelstand sector, a major succession wave is approaching, with an estimated 186,000 companies expected to face ownership transfers between 2026 and 2030. This crisis is compounded by a declining willingness among employees to take on leadership roles; only about 14% of workers express interest in management due to concerns over workload, responsibility, and work-life balance.

Parallel to these succession issues, the impact of toxic corporate cultures is being highlighted. Experts note that toxicity often becomes systemic when destructive behavior is enabled by organizational structures rather than just individual personalities. Key indicators of a toxic environment include the use of information as power, the protection of high-performing but destructive employees, and a lack of psychological safety where employees fear the consequences of offering criticism.