Global logistics software company WiseTech Global will slash about 2000 jobs as it leans into artificial intelligence, as fears around AI disruption loom over local technology stocks.
The cuts, which amount to more than a quarter of the group’s 7000 headcount spread across 40 countries, will be focused on engineers writing code, chief executive Zubin Appoo said.
“I am prepared to say this clearly, the era of manually writing code as the core act of engineering is over,” Mr Appoo told an earnings briefing on Wednesday.
The announcement came as WiseTech grew its first-half revenue by 76% to $US672 million ($A951 million).
The outcome supported a bottom-line net profit of $US106.4 million ($A150.3 million), down 36% on the equivalent half, which was impacted by the acquisition of supply chain software e2Open.
Operating cash flow in the six months to December grew 31% to $US192.3 million ($A272.4 million), and underlying net profit grew 2% to $US112.1 million ($A158.8 million).
“We executed with discipline and delivered results in line with our expectations, and we are confident in our outlook,” Mr Appoo said.
WiseTech has been building toward its AI transformation for some time.
Last year, it built a number of AI agents into its Cargowise platformm which is used by more than 17,000 freight forwarders and logistics providers to manage shipments around the world.
The CEO acknowledged the impact of the ongoing AI transition on outgoing staff.
“This decision was not taken lightly, but it is necessary to ensure we remain disciplined, nimble, competitive and future ready,” Mr Appoo said.
WiseTech chose not to directly address former karaoke machine company Algorhythm Holdings, whose SemiCab platform claimed to be able to scale customers’ volumes by up to 400% without reducing headcount.
That announcement sent global tech stocks into a tailspin and shifted the AI narrative from one of efficiency to one of disruption, elevating the importance of investors avoiding losers over backing winners from the technological revolution.
Investors welcomed WiseTech’s results and the update, with its shares rebounding more than 4% to $45 in morning trade, after tumbling by more than 60% since July 2025.
Wrong headlines
WiseTech had made headlines for all the wrong reasons in the second half, including an corporate regulator and federal police raid of company offices, a shareholder strike on executive pay and a superannuation giant unloading its $580 million stake in the company over ongoing governance concerns.
Co-founder, executive chair and chief innovation officer Richard White, who stepped down as chief executive in October 2024 amid allegations of bullying and undisclosed workplace relationships, which were denied, told Wednesday’s briefings he was in the right position.
“These days, my role and focus as chief innovation officer, supported by our CEO, Zubin, and a highly motivated senior leadership team, allows me to spend the majority of my time on product design, product expansion and the commercial models of our products,” he said.
“This has always been my strength, and I now have far greater capacity and capability to drive and accelerate these outcomes.”
An internal review by Herbert Smith Freehills and Seyfarth Shaw to examine the media allegations effectively cleared Mr White of any misappropriation of company funds.
An Australian Securities and Investments Commission probe into allegations of potential improper trading by Mr White and three employees is ongoing.
AAP
