AI TRENDS | DeepL to Cut 25% of Workforce Amid AI-Induced Structural Shift

DeepL, a German startup known for its translation tools, announced plans to reduce its workforce by approximately 25%. According to Jin10, CEO Jarek Kutylowski attributed this decision to the 'massive structural shift' brought about by artificial intelligence. Kutylowski stated on LinkedIn that around 250 employees will be laid off, with the company currently employing just over 1,000 people. As AI tools increasingly replace tasks traditionally performed by programmers, tech companies are reallocating resources to develop their own AI products, leading to widespread layoffs across the industry. Last month, Meta announced plans to cut 10% of its workforce, while Microsoft offered buyout packages to about 7% of its U.S. employees. Founded in 2017, DeepL initially positioned itself as a competitor to Google Translate, providing tools to help developers build multilingual applications. In recent years, the company has faced competition from translation services offered by ChatGPT and other AI tools. In 2024, DeepL raised $300 million, reaching a valuation of $2 billion, and had considered an IPO in the United States.