WiseTech Global will eliminate roughly 2,000 positions — nearly 29% of its global workforce — as part of a two-year restructuring centered on artificial intelligence integration. The move represents one of Australia’s largest AI-linked job reductions to date and underscores how rapidly automation is transforming enterprise software companies. While investors welcomed the cost-reset strategy and stronger-than-expected profits, the scale of the workforce reduction highlights the structural shifts underway in the technology sector.

AI Pivot Drives Major Workforce Reduction

The logistics software provider, which employs about 7,000 people across 40 countries, said AI will be embedded into both customer-facing products and internal operations. Chief Executive Officer Zubin Appoo emphasized that automation is already accelerating development timelines dramatically. Projects that once required six to seven months can now be completed in a single day, while global customs rollouts that previously took up to two years can be executed six to seven times faster.

The restructuring will disproportionately affect product development and customer service teams, with some divisions facing reductions of up to 50%. WiseTech’s U.S. cloud subsidiary E2open, acquired for $2.1 billion in August, is among the units expected to undergo significant cuts.

Appoo signaled a philosophical shift in engineering culture, stating that “the era of manually writing code as the core act of engineering is over.” However, he noted that customer-facing and sales roles would remain dependent on human interaction, suggesting a redistribution rather than wholesale elimination of talent.

Financial Performance Softens Market Reaction

Despite the sweeping layoffs, WiseTech’s shares rose 11.1% to A$47.74, outperforming Australia’s S&P/ASX 200 index, which gained 1.2%. The rally followed an earnings report that beat expectations, with first-half underlying net profit reaching $114.5 million — 6% above consensus estimates. The company also reaffirmed its full-year outlook and declared an interim dividend of 6.8 cents.

Yet the stock remains 68% below its November 2024 peak, reflecting prior governance concerns involving founder and former CEO Richard White, as well as investor unease about AI-driven disruption.

The market’s positive reaction suggests that investors view the AI restructuring as a proactive cost optimization measure rather than a distress signal. In capital markets increasingly focused on efficiency ratios and margin expansion, workforce rationalization tied to automation can be interpreted as strategic repositioning.

Broader Implications for the Tech Sector

WiseTech’s announcement mirrors a broader global trend. Amazon recently disclosed 16,000 additional job cuts, reinforcing the pattern of AI-enabled restructuring across major technology firms. As automation capabilities expand from administrative tasks to advanced coding and logistics optimization, labor intensity in software development is declining.

The long-term question centers on productivity versus employment. If AI integration accelerates output and reduces operational costs, profitability may strengthen even as headcount contracts. However, such transitions can reshape skill demand, favoring AI-literate engineers and strategic roles over routine technical functions.

Looking ahead, WiseTech’s ability to execute its AI pivot while maintaining customer satisfaction and innovation momentum will determine whether the restructuring translates into sustained earnings expansion. The company’s reaffirmed guidance signals confidence, but near-term disruption remains inevitable.