# 222 Hacks, Strikes, Layoffs, Rankings, and Localization Jobs

Current Trends in the Language Industry

Overview of Recent Developments

• Despite industry cuts, the top 40 Language Service Providers (LSPs) are still hiring, with over 1,000 full-time positions available.

• A new PR guide titled "The Future of Language Industry Jobs" has been released, covering current and future employment trends in the language sector.

Upcoming Events

• The hosts will be attending a conference in Menlo Park, Silicon Valley on September 4th and 5th at the Nia Hotel.

• An investor panel featuring representatives from K1 and VSS will discuss investment trends; these investors have stakes in companies like Globo and XTM.

Key Insights from Surveys

• The second annual LC industry survey results will be presented at the ALC Annual Summit in Montreal from September 11th to 13th.

• Over 120 companies participated in this extensive survey, which aims to provide comprehensive data on industry trends.

Job Market Dynamics for LSPs

Employment Trends

• Full-time employment across LSPs has slightly declined in 2023, aligning with previous findings from the LSP Index (LSPI).

• Super agencies have reduced staff while Challenger LSPs have increased hiring, indicating a shift within different segments of the market.

Demand for AI Skills

• Despite overall job cuts, there is significant demand for roles related to AI; active employees with "AI" in their job title have increased by eight and a half times since 2020.

Career Opportunities in Localization

Trends in Job Market for Localization Professionals

• The beginning of the year is identified as a promising time for professionals looking to transition from vendor roles to in-house localization teams at enterprises.

• A notable spike in hiring for senior and strategic localization roles occurs during the first quarter, particularly beneficial for those with specialized backgrounds.

Challenges Faced by Freelance Linguists

• Over half of surveyed translators reported a decrease in demand for their services over the past year, primarily attributed to AI advancements.

• Approximately 50% of freelancers anticipate continued demand decline over the next five years, indicating a concerning trend within the industry.

• Two-thirds of freelance linguists have contemplated career changes recently, with one-fifth actively applying for new positions.

Career Transition Considerations

• Talented linguists are exploring various roles such as marketing or project management within the industry, but transitioning from freelance to corporate can be challenging.

• The shift towards remote work has changed expectations; unlike ten years ago, full-time jobs no longer require physical office presence.

Market Dynamics and AI Impact

• Spence Green, CEO of Lilt, notes that many skilled linguists are leaving due to price pressures and an overwhelming focus on AI capabilities.

• There is an expectation that reliance on AI will balance out as companies recognize its limitations compared to human verification processes.

Future Outlook and Industry Needs

• Despite current challenges, there remains a need for skilled linguists who can provide creativity and context integration that AI cannot replicate effectively.

• The market currently reflects a mismatch between supply and demand; while talented individuals are leaving, demand persists without corresponding adjustments in pricing strategies.

Growth Among Language Service Providers

Inc 5000 List Insights

• The Inc 5000 list highlights rapidly growing privately held U.S.-based companies; 14 language service providers (LSPs) made it onto this year's list.

Growth Trends in Language Service Providers

Overview of Language Service Provider Rankings

• The transcript discusses the ranking of language service providers (LSPs), highlighting that Boost Lingo is ranked 839, indicating strong growth over a three-year period.

• Bilingual Global ranks next at 1,427 with approximately 360% growth; Acutrans and Translation Station are noted as moving down the rankings.

• Other companies like Argo Translation and Alinos also show significant growth rates above 100%, with Erikson Translation clearing the list at rank 4,497.

Insights on Revenue Disclosure and Growth Measurement

• The discussion emphasizes that while revenue levels are not disclosed due to many companies being private, the three-year growth picture provides valuable directional information.

• A three-year average smoothens out anomalies from individual years, making it more meaningful for assessing smaller companies' performance.

• Smaller companies can achieve higher percentage growth more easily than larger firms, which may appear lower on the list despite their overall size.

Strategic Moves and Market Representation

• Companies at the top of the list often made strategic moves in recent years that contributed to their rapid growth compared to established players like TransPerfect.

• Notably, interpreting services are disproportionately represented in this context, suggesting a robust market segment within language services.

Performance of Healthcare Services Company AMN

• AMN's second-quarter revenue was reported at $741 million but showed a decline of 25% year-on-year; however, language services experienced an increase driven by video interpreting.

• The acquisition of Stratus Video Interpretation has proven beneficial for AMN as it became a key driver for revenue growth amidst overall declines in other areas.

Content Security Issues Faced by Auno

Content Security and Community Reactions

Challenges of Content Security

• The presence of unauthorized content online is a significant issue, prompting Netflix to take aggressive action to remove such material.

• The anime community is particularly vocal against spoilers and unauthorized postings, reflecting their frustration over content theft.

Industry Struggles with Confidentiality

• Maintaining security and confidentiality poses ongoing challenges for Language Service Providers (LSPs), especially given the variety of content they handle.

Impact of Recent Strikes in Localization

Overview of Strikes

• Recent strikes have emerged in game localization and dubbing sectors, linked to actions by the Screen Actors Guild (SAG-AFTRA).

Consequences for Game Localization

• The strike began on July 26th, leading to expected disruptions in game localization and dubbing due to halted projects and delays.

• Companies may resort to hiring non-union actors or utilizing AI technologies as alternatives during the strike.

Complexities Surrounding Voice Acting

Union Influence on Voice Actors

• Understanding the global influence of unions on voice actors is complex; physical presence requirements complicate matters for Hollywood actors compared to voice talent.

Dubbing vs. Voice Acting

• There’s ambiguity regarding whether dubbing falls under voice acting exemptions from union strikes, highlighting the need for expert clarification.

Tensions Between AI and Human Talent

Intersection of Technology and Talent

• The ongoing tension between AI technologies and human talent in localization reflects broader industry dynamics that are still evolving.

Recent Developments in M&A Activity

Acquisition Highlights

• Translate One has acquired Inext, a long-standing language service provider based in Barcelona, marking its third acquisition this year.

Details about Inext

AI Funding Trends and Developments

Overview of Recent Funding Rounds

• Discussion on the ongoing expansion of AI-enabled solutions, highlighting a recent $5 million Series A2 funding round.

• Exploration of the terminology around funding rounds, questioning whether "A1" is used retrospectively after raising an A2.

• Mention that "pre-series A" is not commonly referred to as seed funding for companies that are several years old.

Use of Funds and Product Development

• Language IIO plans to use their funds for market research and development, focusing on machine translation for specific use cases like live chats.

• They are developing an AI-native multilingual agent assistant and reported strong growth in retail, travel, and finance sectors in early 2024.

Insights into Bearing Lab's Pre-Series A Round

• Bearing Lab raised $2.3 million in a pre-series A round; they focus on language AI services with a client base primarily in legal and financial sectors.

• The company has over 300 clients across 15 countries, with 20% of revenues from international clients, aiming to increase this percentage.

Company Growth and Future Plans

• Co-founder J Yun Kim noted that while they were bootstrapped initially, the pre-series A funding will accelerate product and market development.

• Bearing Lab reported revenue growth to $2.3 million in 2023 (up from $2.1 million), employing 25 staff members alongside 500 freelance lawyer linguists.

Investment Landscape Insights

• Discussion about SoftBank Ventures' role as an investor in Bearing Lab; noted as one of the largest VCs globally with a mixed track record but significant successful investments like Alibaba.

Upcoming Events