Copyright © BusinessAMBE 2023

Key takeaways

  • DeepL, known for its translation tools, plans to cut its workforce by 25 percent, affecting around 250 employees.
  • The restructuring aims to streamline DeepL’s operations and speed up its adaptation to rapidly evolving AI technology.
  • The trend towards AI automation is impacting the tech industry, prompting leading companies such as Meta and Microsoft to reduce their headcount as well.

German start-up DeepL is preparing to shrink its workforce by around 25 percent. According to CEO Jarek Kutylowski, that decision stems from a major restructuring driven by developments in AI. Around 250 employees will be affected by the cuts, pending legal procedures. Kutylowski explained on LinkedIn that the company’s adaptation to AI requires a streamlined structure with faster decision-making and less bureaucracy.

Job losses elsewhere in the tech sector too

The staff cuts at DeepL are part of a broader trend in the technology sector, where AI tools are automating tasks that were previously performed by programmers. Many companies are reallocating their resources to develop their own AI products.

Meta Platforms recently announced plans to cut 10 percent of its workforce, while Microsoft is offering redundancy packages to around 7 percent of its US employees.

DeepL’s competition

Founded in 2017 as a rival to Google Translate, DeepL is based in Cologne and offers tools that enable developers to build multilingual applications. The company is now facing increasing competition from translation services provided by AI tools such as ChatGPT. In 2024, DeepL raised 300 million dollars (255 million euros) in funding at a valuation of 2 billion dollars (1.7 billion euros) and has considered a US stock market listing. (fc)

Follow Business AM on Google News as well

Want access to all articles? Take advantage of our temporary promotion and subscribe here!

© The Content Exchange, source News