Recently, I’ve noticed that the translation tools industry is also going through a major reshuffle. DeepL, as Google Translate’s main competitor, recently announced plans to lay off a quarter of its workforce—around 250 people.

So what’s the background? The CEO admitted on LinkedIn that this is in response to the “major structural changes” brought about by AI. DeepL plans to adapt to this AI wave by flattening management layers and speeding up decision-making. In other words, it’s reorganizing its own AI business and concentrating resources more tightly on its core competitive strengths.

What’s interesting is that in 2024, DeepL raised $300 million, with a valuation of $2 billion. At the time, it was even considering an IPO in the U.S. But now it seems that even after raising all that money, it still needs to make adjustments in the AI era. The company, founded in 2017 and headquartered in Cologne, is clearly re-evaluating its position in its AI transformation.

In fact, it’s not just DeepL. Tech giants like Meta and Microsoft have also been making similar moves recently—freeing up resources through layoffs and buyouts and concentrating their efforts on building their own AI products. The whole industry is speeding up adjustments to its headcount and cost structure, which shows that the AI revolution is not only a technological shift, but also a restructuring of organizations and business models. DeepL’s move, to some extent, reflects the growing pains the broader tech industry is experiencing.