Australian logistics software giant WiseTech Global is making a dramatic shift toward artificial intelligence, announcing plans to cut approximately 2,000 jobs over the next two years. This move represents a fundamental transformation in how the company approaches software development and internal operations.
The Scale of Workforce Reduction
The layoffs will affect around 29 percent of WiseTech's global workforce across 40 countries, with some teams potentially being reduced by half. The restructuring will begin with product and development teams, followed by customer service roles throughout the organization.
Market Reaction and Financial Context
Investors responded positively to the announcement, with WiseTech shares jumping 10.7 percent in early trading to $47.60 per share. This comes despite the company reporting only a marginal two percent increase in first-half underlying profit.
CEO's Vision for the Future
Chief Executive Officer Zubin Appoo made a bold declaration about the changing nature of software engineering: "The era of manually writing code as the core act of engineering is over." He described this shift as "the most significant change in software development in decades."
Impact on Recent Acquisitions
One of the most affected divisions will be E2open, a US cloud computing firm recently acquired by WiseTech. This division may see workforce reductions of up to 50 percent as part of the broader restructuring.
Broader Company Challenges
The announcement comes amid broader challenges for WiseTech. Investors have been shunning WiseTech stock since late 2024, with shares down 70 percent since hitting a record high in November 2024. This decline followed allegations against founder and former CEO Richard White regarding payments to an alleged former lover among others.
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