Japan labor trends: Rising employee-related bankruptcies and profitable restructuring

Japanese corporations are undergoing significant structural shifts in their workforces, characterized by two distinct trends: rising bankruptcies due to employee departures and large-scale 'black ink restructuring.'

Teikoku Databank reported that bankruptcies caused by the resignation of employees or executives rose to 83 cases between January and July 2026, a 12.2% increase from the previous year. This trend is driven by small and medium-sized enterprises' inability to raise wages amid rising costs, making the loss of core personnel a critical threat to business continuity. The service and construction industries have been particularly affected.

Simultaneously, major listed companies are conducting large-scale voluntary retirement programs despite being profitable. In 2025, recruitment for early retirement reached 17,875 people, with approximately 70% of participating companies reporting profits. Notable examples include Mitsubishi Electric, which expects 4,700 applicants, and Panasonic Holdings, which expanded its structural reform target to 12,000 people.

Experts suggest this 'black ink restructuring' is not merely about cost-cutting, but about reallocating human resources. Companies are moving away from traditional roles toward specialized talent in growth areas like DX and AI, often offering significantly higher compensation to high-level specialists while encouraging older employees to exit.