Supernal, an air taxi company backed by Hyundai Motor Group, laid off most of its staff last week as it struggles to prove its technology.
The Irvine-based startup cut 296 jobs last Friday, about 80% of its total workforce, the aviation trade publication the Air Current previously reported. A skeleton staff of 70 to 80 employees will remain.
The Hyundai Motor-backed Supernal did not immediately respond to a request for comment.
The layoffs affected employees at the Mojave Air & Space Port test facility as well as in Orange County and Fremont. Supernal moved its headquarters from Washington, D.C., to Irvine in 2023.
“This decision is a strategic pivot to ensure our staffing and cost structures are optimized for the long-term delivery of our market-aligned aircraft design,” a company spokesman said in a statement to the Orange County Register. “Hyundai Motor Group remains committed to the Advanced Air Mobility business as part of its future mobility vision.”
The company’s operations will be consolidated to its Irvine headquarters, the spokesperson said. Supernal is one of several companies in California racing to monetize electric-powered vertical takeoff and landing aircraft, known as eVTOL.
Last April, Supernal began test flights of its demonstration aircraft, with plans to complete certification in 2028 for its four-passenger S-A2 eVTOL. That timeline will almost certainly be pushed back as the company restructures. The Orange County Register reported that the company has paused its aircraft development while it evaluates next steps.
The Santa Cruz-based air taxi venture Joby and San Jose-based Archer Aviation are developing their own aircraft with ambitions to begin limited service in time for the 2028 Summer Olympics in Los Angeles. Late last year, Archer bought control of the Hawthorne Airport to use as a hub and test site for its eVTOL fleet.
A Palo Alto-based company called Pivotal is developing a one-person eVTOL for recreational use, available to reserve for around $200,000. Deliveries are expected within a year, the company’s chief executive said.
Supernal is falling behind in the race. It has been slow to demonstrate success at its Mojave test site and suffered a setback last year when a Newport Beach resident and former Supernal employee sued the company and Hyundai Motor Group alleging gender discrimination and retaliation.
Last August, Supernal’s chief executive and head of Hyundai’s Advanced Air Mobility division Jaiwon Shin stepped down from his position.
“As Supernal transitions from early-stage R&D to the next phase of development and business model operation, the Group is implementing a strategic leadership change to align with the evolving needs of the business,” the company said in a statement at the time.
The startup was founded in 2020 and has received more than $6 billion in investments from Hyundai.
