Corporate insolvencies in Bavaria have reached their highest level since 2015, with nearly 17,000 workers affected. The number of affected employees has doubled compared to last year as economic challenges continue to strain businesses.
The ongoing economic crisis has pushed a growing number of companies in Bavaria into bankruptcy. The Bavarian State Office for Statistics reported that in the first half of the year, courts processed over 1,444 insolvency applications from businesses in the state, marking a 9% increase compared to the second half of 2023. This surge in insolvencies has significantly impacted the workforce, with 16,899 employees now facing job losses—double the number affected during the same period last year.
Impact of economic downturn
The increase in corporate insolvencies reflects the broader economic downturn in Germany, where nearly all industries are reporting a decline in orders. The Federal Statistical Office registered a 13.5% increase in insolvency filings across the country in July compared to the previous year. One notable example is the St. Josef Hospital in Schweinfurt, Lower Franconia, which will close by the end of the year, leaving 800 employees without jobs. The closure has been met with considerable disappointment among the staff and the local community.
The economic situation remains dire, and as more companies struggle, the number of insolvencies is expected to continue rising, posing further challenges for both businesses and their employees in Bavaria and beyond.
