On December 20, 2024, Lilium, the German electric air taxi developer, announced mass layoffs, signaling a halt to its operations.

The company, which had raised over $1 billion and went public, laid off around 1,000 employees due to failed financing efforts and impending insolvency.

A critical deadline for securing investor funding was set for December 23, 2023; without this funding, Lilium would enter regular bankruptcy proceedings.

Despite the dire circumstances, sources indicate that Lilium remains hopeful for a rescue plan, although time is running out for finalizing any agreements.

Following the layoffs, a pervasive atmosphere of uncertainty and confusion engulfed the company, with many employees actively seeking new job opportunities.

Co-founder Patrick Nathen expressed his sadness over the closure, reflecting on the irony of the timing after nearly 11 years of effort.

While Lilium reported 108 firm orders and intentions for nearly 600 aircraft, the future of the project remains uncertain as the workforce seeks new opportunities.

KPMG has been appointed to manage the sale process amidst the insolvency proceedings, as the company attempts to navigate its financial troubles.

Lilium has consistently reported millions in losses over the years, raising significant concerns about its long-term viability.

The parent company, Lilium NV, based in Amsterdam, also filed for regular insolvency shortly after the layoffs were announced.

Recent investor talks, noted in a SEC filing from December 16, 2024, proved unsuccessful, leading to the mass layoffs and diminishing hopes for recovery.

As employees were notified of the shutdown just before Christmas, many took to LinkedIn to share their experiences, but Lilium has yet to release an official statement.