DeepL is laying off 250 of its more than 1,000 employees. CEO Jarek Kutylowski calls the move a deliberate structural choice, not an emergency measure. Like many other tech companies, the Cologne-based translation software company is striving to become “AI-first” and is working on a real-time speech translation tool following a recent acquisition.
CEO and founder Jarek Kutylowski describes the round of layoffs as a deliberate choice and not an emergency measure. The timing is, in his words, intentionally early. “We are not waiting until the shift is fully obvious to everyone in the market — the right time to make a move like this is before you have to,” he wrote in a statement. The reorganization appears to be a direct consequence of findings from an analysis by the management team on how DeepL can best operate with AI as a new factor in daily work. Kutylowski wants to embed AI in every layer of the organization going forward.
Typically, such a move is cited as an excuse for a round of layoffs, so some skepticism regarding the announcement is understandable. The question is whether AI can match the productivity of human employees in the short term, should the downsizing have actually been driven by the technology.
From translation tool to AI platform
In any case, DeepL has already been on the “AI track” for the past few months. In November, the company launched an AI agent and Customization Hub, designed to automate repetitive business processes such as CRM management and customer service. That was a deliberate step outside the traditional translation market, allowing the company to offer a more diverse range of services. Earlier, DeepL had already announced a voice API for real-time translation in call centers, specifically aimed at expanding its existing capabilities.
In 2024, DeepL raised $300 million in a funding round at a valuation of $2 billion. DeepL was considering an IPO with a target valuation of $5 billion last year; it is unclear whether this is still the plan.