Hyundai’s ambitious venture into the realm of flying electric vehicles has taken a significant hit, as the company has drastically reduced its workforce in California. This marks another setback for businesses operating within the state.
Supernal, Hyundai’s subsidiary focused on developing vertical take-off aircraft, recently announced the elimination of 296 positions. These layoffs impact facilities in Orange County, Fremont, and a testing location in Mojave.
The $1.7 billion enterprise, which originally moved its operations from Washington DC to California three years ago, has decided to consolidate its activities at its main office in Irvine.
A company spokesperson shared with the Orange County Register that this move is part of a strategic shift aimed at aligning staffing and cost structures for the sustainable delivery of aircraft designs that meet market demands.
Despite these changes, Hyundai Motor Group remains committed to advancing air mobility as an integral aspect of its future vision. Supernal will continue to function as the group’s primary arm for developing aircraft within the Advanced Air Mobility (AAM) sector.
The spokesperson further emphasized that the company’s current priorities include stabilizing operations, crafting a new business model, and creating an aircraft that is commercially viable.
Hyundai reshuffled the leadership structure at Supernal in September and has been struggling with test flights for autonomous EVs in Mojave.
After 10% of its workforce was laid off last summer, 80 remain.
It is the latest blow for business in California as rafts of companies scale back in the Golden State amid high taxes.
Last week the Post reported major wine manufacturer Gallo was closing a large Napa Valley production facility, wiping out nearly 100 jobs.
