Record High Corporate Insolvencies in Germany in 2025 Reflect Economic Strain, Including Native Instruments Filing

In 2025, Germany experienced a significant surge in corporate insolvencies, reaching the highest level since 2005 with 17,604 cases according to an analysis by the Leibniz Institute for Economic Research Halle (IWH). This sharp increase is not just a residual effect of the COVID-19 pandemic but reflects ongoing economic challenges. Particularly affected is the manufacturing sector, which lost around 62,000 jobs.

December 2025 saw a 17 percent increase in insolvencies compared to the previous month, with 1,519 cases—a 75 percent rise compared to the average December months from 2016 to 2019. These insolvencies have resulted in significant income and wage losses for employees. Steffen Müller, head of insolvency research at IWH, pointed out that early indicators suggest persistent high insolvency rates will continue into the first quarter of 2026.

Amid this worrying trend, the renowned Berlin-based music software and DJ technology firm Native Instruments filed for insolvency at the end of January 2026. Founded in 1996, the company developed influential products such as Kontakt, Reaktor, and Traktor, which have shaped the soundscapes of clubs and studios worldwide. The insolvency affects approximately 350 staff and has provoked concern in the music community about potential discontinuation of support and updates for existing software. Legal documents from the Berlin-Charlottenburg District Court show that lawyer Torsten Martini was appointed as provisional insolvency administrator.

Native Instruments has a history of struggles including layoffs, leadership changes, and a takeover by private equity firm Francisco Partners in 2021, followed by a brief rebranding to Soundwide. The rise of AI technology has introduced additional competition pressures. DJ Anna Z voiced her fears about the impact on her creative work without Native Instruments' products.

The future of Native Instruments is uncertain, with possible rescue or asset sales under consideration, highlighting broader implications for Berlin's music technology heritage and the creative industries.

This heightened insolvency landscape underscores significant economic vulnerabilities across Germany’s sectors, with hundreds of thousands of jobs at risk and established companies like Native Instruments exemplifying the challenges ahead.