After unsuccessful attempts to get funding and emerge from bankruptcy. Lilium, a once-famous company in the fledgling electric aircraft sector raised over $1 billion before going public. That has suspended operations and laid off over 1,000 employees.
The layoffs were initially reported by the magazine Gründerszene. Patrick Nathen, the CEO and co-founder of Lilium, revealed on LinkedIn that the 10-year-old business had ceased operations.
Nathen said
“After 10 years and 10 months, it is a sad fact that Lilium has ceased operations. The company that Daniel, Sebastian, Matthias, and I founded can no longer pursue our shared belief in more environmentally friendly aviation. This is heartbreaking and the timing feels painfully ironic,”
The layoffs, which affect the majority of the company’s employees, follow the December 16 regulatory filing that stated that roughly 200 staff had been let go.
In response to an email requesting comment, a Lilium representative gave no details.
Email read
“The company will communicate once we can say something,”.
For months, Lilium was creating VTOL (vertical take-off and landing) aircraft that could reach speeds of up to 100 km/h. That has been having difficulties. Tencent and other investors were drawn to the startup’s electric aircraft concept. That also secured clients, including a Saudi Arabian contract for 100 electric jets. The company reverse-merged with blank-check company SPAC Qell in 2021. This is to go public on the Nasdaq Exchange.
Furthermore, the company was still years away from delivering its product. Despite having made considerable advances. Such as powering up its first full-scale prototype.
After failing to secure emergency funding from the German government, Lilium announced in October that the company would declare insolvency. This is the U.S. equivalent of bankruptcy. Lilium lost control of its businesses, including Lilium eAircraft. It went bankrupt. The sale process was being handled by KPMG.
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