This AI-pilled CEO's memo cutting over 21% of the company is a prime example of the new layoffs playbook

In a striking move reflective of the ongoing transformation in the corporate landscape, DeepL, a German AI translation startup, has announced a significant workforce reduction, cutting approximately 250 positions—over 21% of its total staff. This decision was detailed in a memo from founder Jarek Kutylowski, who took to LinkedIn to share his thoughts on the current state of the industry. Kutylowski characterized this as the most challenging decision of his career, expressing gratitude towards the departing staff for their contributions. He highlighted the profound changes in the nature of work, attributing this shift to advancements in artificial intelligence. He stated, "We are currently living through a massive structural shift in what work exists, who does it, and how many people it takes to do it well, and that shift is because of AI." Positioning DeepL as a frontrunner in this AI-driven evolution, Kutylowski emphasized that while many firms acknowledge the need for adaptation, few are taking decisive actions. He suggested that organizations like DeepL, which embrace this transformation, will significantly shape the future of the industry over the next decade. The term "AI-native" emerged prominently in his message, as Kutylowski argued for the integration of AI at all organizational levels. He drew parallels to Jack Dorsey's reorganization of Block, advocating for a leaner structure that empowers smaller teams or even individuals to accomplish tasks that previously required larger groups. Echoing sentiments from other tech leaders, he noted that reducing management layers and fostering smaller teams could lead to more effective operations. Kutylowski also invoked the concept of "founder mode," stating his intention to personally spearhead efforts to rethink product development with AI at its core, indicating a cultural shift within the company. As the trend of similar layoff memos becomes prevalent across tech firms, Kutylowski's approach aligns with those from companies like Block and Atlassian, which have also highlighted the necessity for streamlined teams and enhanced efficiency through AI. The broader conversation in the industry raises questions about whether AI is genuinely driving these layoffs or if it serves as a convenient justification for workforce reductions. In a candid moment, Kutylowski posed a critical question regarding DeepL's readiness to operate as a leading global AI entity amidst rapid changes, ultimately concluding that the current structure is insufficient for the challenges ahead.