WiseTech Global to Cut 2,000 Jobs for AI Efficiency
WiseTech Global, a logistics software company, plans to cut up to 2,000 jobs as part of a restructuring focused on implementing AI-driven efficiencies. The move signals a broader trend of technology companies re-evaluating headcount and operational models to leverage automation. This highlights a strategic push to demonstrate measurable ROI from technology and AI investments to boards and investors.
- The job cuts represent nearly 30% of WiseTech's global workforce of around 7,000 people and will be phased over fiscal years 2026 and 2027. - The reductions will heavily target product, development, and customer service teams, with some departments facing headcount reductions of up to 50%. The cuts will also apply to e2open, a U.S.-based cloud business WiseTech acquired for $2.1 billion in August 2025. - CEO Zubin Appoo declared, "the era of manually writing code as the core act of engineering is over," stating that AI is unlocking unprecedented levels of productivity. The company's internal projections suggest AI could boost developer efficiency by 40 to 60 percent within two years. - This move is part of a broader strategy to shift away from per-seat software licensing. As AI reduces headcount at customer organizations, seat-based revenue models become a vulnerability, prompting WiseTech to transition 95% of its CargoWise customers to a new transaction-based pricing model. - The announcement was made alongside half-year financial results showing a 76% increase in total revenue to $672 million, largely boosted by the e2open acquisition. However, statutory net profit fell 36% to $68.1 million. - Investors reacted positively to the cost-cutting and AI strategy, with company shares jumping as much as 11.1% on the day of the announcement. - The restructuring follows a period of leadership change; founder Richard White stepped down as CEO in October 2024 amid personal allegations that had caused the company's share price to fall significantly. - This action mirrors a wider trend in the tech industry, where companies like Microsoft and Salesforce have also cited AI as a driver for significant layoffs in 2025.
