Lilium Electric Aircraft Startup Ceases Operations, Layoffs 1,000 Workers

Lilium Halts Operations, Lays Off Workforce

Lilium, a company previously highly regarded within the electric aircraft sector and having secured over $1 billion in funding prior to its public listing, has unfortunately been forced to cease operations.

This decision follows unsuccessful attempts to secure further financing and resolve its insolvency situation. Approximately 1,000 employees have been affected by the layoffs.

Potential Restructuring on the Horizon

Update: There is a possibility of Lilium’s revival. A recent announcement on December 24th indicates that an investor consortium has reached an agreement to acquire two of Lilium’s subsidiaries.

This acquisition could facilitate a restructuring process and allow the company to emerge from insolvency.

Confirmation of Company Shutdown

The initial reports regarding the workforce reductions were published by Gründerszene. Lilium co-founder Patrick Nathen subsequently confirmed the company’s operational halt via a LinkedIn post.

Nathen expressed deep regret, stating that the 10-year-old company could no longer advance its commitment to more sustainable aviation practices.

Recent Layoff Events

These recent layoffs encompass the majority of Lilium’s personnel. They occurred shortly after a previous reduction in staff, involving approximately 200 employees, as documented in a regulatory filing on December 16th.

Company Response

A Lilium spokesperson acknowledged an inquiry for comment but refrained from providing specific details. The response indicated that further communication would be issued when information became available.

Development and Challenges

Lilium was focused on the development of VTOL (vertical take-off and landing) aircraft, aiming for speeds reaching up to 100 km/h.

The company’s vision attracted significant investment, including backing from Tencent, and secured customer commitments, such as an order for 100 electric jets from Saudi Arabia.

In 2021, Lilium became a publicly traded company on the Nasdaq Exchange through a reverse merger with the SPAC, Qell.

Progress and Remaining Hurdles

Despite achieving some milestones, including the successful powering of its first full-scale prototype, the company remained several years away from the actual delivery of its product.

Insolvency Filing and Sale Process

In October, Lilium announced its intention to file for insolvency – equivalent to bankruptcy in the U.S. – after failing to obtain emergency funding from the German government.

This insolvency resulted in the loss of control over its subsidiaries, including Lilium eAircraft. The sale process was being managed by KPMG.