DeepL, the Cologne-based translation startup, is cutting 250 jobs as part of a major business overhaul to compete in the AI era. Founded in 2017, the company employs over 1,000 people worldwide and counts ICONIQ Growth, Atomico and IVP among its investors. The move comes after DeepL secured a $300 million funding round last year at a $2 billion valuation.

CEO Jarek Kutylowski described the layoffs as a "deliberate structural choice" to maintain DeepL's position as a global AI leader. The company is transforming its operations by embedding AI into every layer of its business, rather than waiting until market shifts become obvious. DeepL believes proactive adaptation is essential for staying competitive in the rapidly evolving AI landscape.

Beyond its core translation services, DeepL has expanded into new AI territory with its "AI agent" released last year. The startup is also developing a real-time voice translation tool, for which it acquired the team from US firm Mixalo. This strategic pivot aims to position DeepL beyond simple translation services into broader AI-powered communication solutions.