Australian software company WiseTech Global is set to eliminate approximately 2,000 jobs, marking a substantial cut of nearly one-third of its global workforce over two years. This restructuring is driven by the company's strategic integration of artificial intelligence into both its customer-facing software and internal operations.
The move affects about 29% of WiseTech's approximately 7,000 employees across 40 countries. The company's Chief Executive Officer, Zubin Appoo, stated that AI is dramatically accelerating project completion times, with tasks that once took months now achievable in a single day. He noted that AI enables capabilities like rapid global customs integration, significantly reducing implementation timelines.
WiseTech's U.S. cloud computing division, E2open, acquired for $2.1 billion, is among the divisions facing potential cuts of up to 50%. The company's CEO emphasized that roles requiring direct customer interaction or sales will continue to demand human engagement.
WiseTech reported first-half underlying net profit of $114.5 million, exceeding market expectations. Despite a recent surge in share price following the announcement, the stock remains significantly below its peak from late 2024, influenced by past governance concerns and market apprehension regarding AI's impact on software businesses.