tech
May 8, 2026
This AI-pilled CEO's memo cutting over 21% of the company is a prime example of the new layoffs playbook
DeepL laid off 250 employees. CEO Jarek Kutylowski's memo referenced AI, smaller teams, fewer layers, and founder mode.
TL;DR
- DeepL laid off over 21% of its staff, around 250 employees.
- CEO Jarek Kutylowski cited AI as the primary driver for the layoffs, calling it a "massive structural shift."
- The memo highlighted the trend towards smaller teams, fewer management layers, and an "AI-native" organizational structure.
- Kutylowski announced he would enter "founder mode" to lead a taskforce rethinking product development with AI at its core.
- Similar layoff strategies referencing AI, smaller teams, and reduced management layers have been observed at companies like Block, Atlassian, and Meta.
- There is skepticism about whether AI is the sole reason for layoffs, with some suggesting "AI washing."