WiseTech Global plans to lay off 2,000 employees, nearly 30% of its workforce, over two years due to AI efficiencies, reports the Journal of Commerce.
WiseTech Global will lay off about 2,000 employees, nearly 30 per cent of its workforce, over two years due to efficiencies from artificial intelligence, reports New York's Journal of Commerce.
The announcement coincided with WiseTech's half-year earnings release and sent its share price up 11 per cent on the Australian stock exchange. The company stated that AI tools developed internally and by firms such as Anthropic, OpenAI, and Google will reduce the need for roles in programming, product development, and customer service.
Chief Executive Zubin Appoo said in a video message that the decision was necessary to remain competitive and future-ready. He added that the transformation would reshape costs while lifting productivity.
The move follows a pricing model change last year that unsettled customers, including forwarders, customs brokers, and third-party logistics providers. WiseTech is also integrating its largest acquisition, the US$2.1 billion purchase of E2open, which expanded its reach to shippers.
Analysts noted that the layoffs highlight how AI is altering software development and sales, and may pressure smaller logistics technology providers to reassess headcount. Publicly traded firms such as WiseTech face scrutiny over how AI affects margins and market share.
WiseTech reported operating profits of US$252.1 million on revenue of US$672 million for the six months to December 31, with a 38 per cent margin. Revenue rose 76 per cent year on year, largely from E2open, while organic growth was 12 per cent.
The company reduced reliance on its largest customers, with 23 per cent of revenue from its top 20 clients compared with 33 per cent a year earlier. WiseTech stated that it aims to build a one-stop logistics software platform covering freight procurement, execution, payment, analytics, trade compliance, and accounting.
