---
title: "Japan's \"2025 Cliff\" | one to ONE Holdings"
description: Japan's 2025 Cliff is caused by legacy system aging and mass engineer retirement. The talent shortage continues, making DX a prolonged struggle.
image: https://www.o2oh.com/hubfs/o2Oh_18mm.jpg
---

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# Glossary

### GLOSSARYTerms A-Z

- [Glossary](https://www.o2oh.com/glossary)
- [ALL](https://www.o2oh.com/glossary?val=all)
- [A～G](https://www.o2oh.com/glossary?val=a_g)
- [H～N](https://www.o2oh.com/glossary?val=h_n)
- [O～U](https://www.o2oh.com/glossary?val=o_u)
- [V～Z](https://www.o2oh.com/glossary?val=v_z)
- [Numbers ・ Symbols](https://www.o2oh.com/glossary?val=0_9)

# Japan's "2025 Cliff"

Japan's "2025 Cliff" originated in the Ministry of Economy, Trade and Industry, Government of Japan (METI)'s 2018 report, which projected an impending crisis due to the severe ageing of [legacy systems](https://www.o2oh.com/glossary/legacy-system) and the mass retirement of veteran engineers. 

The report warned that this would result in an annual loss of approximately ¥12 trillion ($79.2 billion) after 2025 by stifling [Digital Transformation (DX)](https://www.o2oh.com/glossary/digital-transformation).

As of late 2025, the problem remains unaddressed. While awareness and DX investment have grown, the structural challenges of legacy modernization and the acute talent shortage persist, effectively transforming the projected sudden "cliff" into a prolonged and costly struggle.

 

The Toyota Production System as Taught by Toyota - Episode 01 (Source: Toyota Motor Corporation)

### RELATED WORDS

---

- [Japan Iron and Steel Federation (JISF)](https://www.o2oh.com/glossary/japan-iron-and-steel-federation-jisf)

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