Swiss Electric Aviation Startup H55 Cuts Nearly Half Its Workforce, Pivots to Autonomy and Defense

Swiss electric propulsion system (EPS) developer H55 has become the latest company in the electric aviation sector to downsize, announcing a significant round of layoffs amid the industry's continued growth pains.

According to a press release H55 provided to FLYING on Monday, the company laid off 54 employees following a "comprehensive business review." Aviation Week, which first reported the news, noted that H55 had 109 employees before the cuts, meaning the company reduced its headcount by nearly half. Earlier estimates had put the number of redundancies at 80.

A Difficult Turn After a Certification Milestone

The layoffs come only months after H55 reached a key certification milestone for its electric propulsion system—completing safety tests overseen by the European Union Aviation Safety Agency (EASA) focused on verifying the EPS could withstand worst-case failure scenarios, including battery thermal runaway and fire.

According to an August press release, H55 had been targeting EASA certification of its 104 kW EPS under the CS-23 Level 1 category by 2026, followed by FAA certification in 2027.

H55 co-founder and Executive Chairman Andre Borschberg said: "The challenge our industry faces is no longer proving that electric propulsion works—it is helping customers move from R&D to commercial deployment. Today's decisions ensure H55 remains focused on the opportunities where our expertise can create the greatest long-term impact."

Strategic Pivot: Autonomous Systems and Defense

According to the press release, the downsizing is intended to steer H55 toward emerging markets such as autonomous systems and defense applications for its EPS technology.

CEO Rob Solomon said: "The application space for H55 technology has expanded significantly. Aircraft manufacturers are increasingly seeking certifiable energy storage systems, hybrid-electric propulsion, and energy management solutions."

H55 confirmed that Switzerland will remain its core operational base. R&D, testing, and manufacturing will be carried out at the Chandoline business park in Sion, while certification, customer support, strategic partnerships, and other key business functions will be based at Sion Airport (LSGS).

Canadian Presence and Existing Customers

Meanwhile, H55 plans to expand its Canadian footprint—having recently opened a battery manufacturing facility in the country—and will leverage its Montreal location to maintain close ties with U.S. customers.

Existing customers include U.S. flight schools that are expected to take delivery of the Bristell B23 Energic, an electric trainer built by Czech manufacturer BRM Aero and powered by H55's drivetrain, under the FAA's Modernization of Special Airworthiness Certification (MOSAIC) rule.

H55 is also partnering with CAE to electrify a fleet of 80 Piper Archer trainers, and its systems power RTX's hybrid-electric flight demonstrator.

Background and Technical Credentials

H55 was spun out of the Solar Impulse program—the record-breaking solar-powered aircraft project co-founded by Borschberg, who in 2016 piloted Solar Impulse 2 on the world's first solar-powered, zero-fuel circumnavigation of the globe in a fixed-wing aircraft.

The company focuses on certification-grade electric propulsion systems built around commercial lithium-ion cells, designed to be installed across multiple aircraft types via Supplemental Type Certificate (STC) rather than being certified for a single platform.

H55 claims to have designed, built, and flight-tested multiple electric aircraft, accumulating more than 2,000 flight hours. It holds EASA Design Organisation Approval (DOA) and Production Organisation Approval (POA), as well as a type certification basis for its 104 kW system.

Looking ahead, H55 plans to develop a 200 kW EPS for larger CS-23 Normal, Aerobatic, and Commuter category aircraft, as well as higher-power systems for CS-25 aircraft.

Bristell B23 Energic: Flagship Application

The first customer application for H55's flagship EPS is the Bristell B23 Energic—a two-seat, all-electric trainer with a 70-minute endurance including reserves, priced at USD 500,000. H55 delivered the first conforming battery systems to manufacturer BRM Aero this past April, with initial deliveries planned for 2027. The aircraft already has more than 100 orders on the books, with the first two years of production sold out.

Last year, a B23 powered by H55's EPS completed a four-month, eight-state demonstration tour across the United States, conducting 198 all-electric flights, visiting 25 airports, and logging 63 flight hours. H55 estimates the B23 Energic's operating cost at under USD 7 per flight hour, compared with roughly USD 60 per hour for a comparable piston-engine aircraft.

A variant of H55's energy storage system also powers RTX's larger hybrid-electric demonstrator, based on the De Havilland Dash 8 and designed to achieve a 30% improvement in fuel efficiency. H55 completed delivery of the conforming battery system for that project in June.

Additionally, H55 is working on electrification upgrades for CAE's Piper Archer fleet, developing retrofit kits for existing operators, and advancing the electrification of Harbour Air's De Havilland Beaver commuter fleet.

A Sector-Wide Chill

H55's layoffs reflect wider distress across the electric aviation industry, which remains in the developmental stage despite more than a decade of investment for some players.

Last month, Dutch hybrid-electric regional aircraft developer Maeve Aerospace—a partner of Delta Air Lines, SkyWest, and Japan Airlines—declared bankruptcy, casting doubt on those carriers' sustainability commitments. This month, French firm Aura Aero acquired fellow French startup VoltAero, which had been developing a hybrid-electric business jet.

ZeroAvia, another leading hybrid propulsion company, cut half its workforce and paused certification of its commercial ZA600 powertrain, redirecting efforts toward autonomous systems and defense. Earlier, German eVTOL developers Lilium and Volocopter both ran out of cash; Volocopter was revived after being acquired by Diamond Aircraft's Chinese shareholders, while Lilium's assets were sold at auction.

H55 co-founder Gregory Blatt told Aviation Week: "We're not abandoning existing programs—we're recalibrating to be able to pursue other types of programs that are emerging in the market."

Despite the headwinds, the United States continues to make major bets on electric aviation, with airlines, airports, and private investors committing billions of dollars to eVTOL developers, autonomous drones, and supporting infrastructure. Supporting and regulating these new entrants remains a top FAA priority under the current administration, with a national pilot program set to launch across 26 states.

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