Why Did Volocopter Lay Off Its Entire Workforce and Declare Bankruptcy?

Volocopter, once a trailblazer in the electric vertical takeoff and landing (eVTOL) industry, is now at a crossroads. Founded in 2011, the company was among the first to envision a world where air taxis would revolutionize urban mobility.

With cutting-edge projects like the VoloCity, a two-seater multi-rotor aircraft, and the VoloDron, an unmanned aerial system (UAS), Volocopter earned global recognition as a leader in the future of aviation. However, despite its ambitious vision, the company has now reached a devastating turning point.

Let’s explore what led to Volocopter’s downfall and why the company has had to take drastic measures.

Volocopter Declares Bankruptcy and Lays Off All Employees

In a shocking development, Volocopter has officially filed for bankruptcy and terminated all 500 employees. The company’s financial troubles became critical when insolvency benefits expired last week, leaving it unable to sustain operations. Attempts to secure new investors proved unsuccessful, forcing the company to initiate formal insolvency proceedings.

The human resources department, in a final communication to staff, acknowledged the difficult situation and expressed deep gratitude for the dedication and resilience of employees during these challenging times.

Navigating Insolvency: What Happens Next?

With insolvency proceedings now underway, Volocopter is working closely with employment agencies to manage the transition. Key actions include:

Managing payroll for the upcoming months.
Organizing employment support for affected workers.
Continuing to seek investors in a last-ditch effort to revive operations.

While administrators have not given up on securing a last-minute investment, the chances of survival are rapidly diminishing.

CTO Sebastian Mores Reflects on Volocopter’s Legacy

Volocopter’s Chief Technology Officer, Sebastian Mores, shared an emotional message on LinkedIn, paying tribute to the team’s dedication over the years:

“After years of relentless effort from an outstanding team, we are now facing the closing of this chapter for Volocopter… The team is truly world-class. Over the past decade, they have built invaluable expertise across engineering, certification, IT, production, flight testing, strategy, and business development. I couldn’t be prouder of what we have accomplished together.”

He further emphasized his commitment to helping displaced employees find new opportunities:

“If your company is looking for top-tier talent, reach out — I’d be happy to connect you with some incredible people.”

No Lifeline from Geely: Takeover Rumors Prove False

Recent speculation suggested that China’s Geely Automobile was in talks to acquire Volocopter, but these rumors have since been debunked. With no new buyers in sight, the company’s fate remains uncertain.

The End of an Era for an eVTOL Pioneer

Volocopter’s journey from an industry pioneer to bankruptcy serves as a stark reminder of the challenges facing the eVTOL sector. Despite making remarkable advancements in electric aviation, financial instability has ultimately grounded this once-promising company.