AI writing on the wall as WiseTech to cut 2000 coders
Global logistics software company WiseTech Global will cut nearly 2,000 jobs as it pivots to AI, as fears of AI disruption loom in local tech stocks.
CEO Zubin Appoo said the cuts, which account for more than a quarter of the group’s 7,000 employees spread across 40 countries, would focus on engineers who write code.
“I’m prepared to say this clearly; the era of manually writing code as the core activity of engineering is over,” Mr. Appoo said in an earnings briefing on Wednesday.
The announcement comes as WiseTech increased its first-half revenue by 76 per cent to US$672 million ($A951 million).
The result resulted in net profit of US$106.4 million ($150.3 million), down 36 per cent on the equivalent half, impacted by the acquisition of supply chain software e2Open.
In the six months to December, operating cash flow rose 31 per cent to $192.3 million ($272.4 million) and underlying net profit also rose two per cent to $112.1 million ($158.8 million).
“We executed with discipline and achieved results in line with our expectations and we are confident in our perspective,” Mr. Appoo said.
WiseTech has been moving towards AI transformation for some time.
Last year, a number of AI agents were introduced into the Cargowise platform, which is used by more than 17,000 freight forwarders and logistics providers to manage shipments worldwide.
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 that we remain disciplined, agile, competitive and ready for the future,” Mr Appoo said.
WiseTech chose not to directly address former karaoke machine company Algorhythm Holdings, which claims its SemiCab platform can scale customer volume by up to 400 percent without reducing headcount.
This announcement sent global tech stocks into a tailspin and shifted the AI narrative from efficiency to disruption; It has increased the importance of investors avoiding the losers of the technological revolution rather than supporting the winners.
Investors welcomed WiseTech’s results and update; Its shares rose more than four percent to $45 in morning trading after falling more than 60 percent since July 2025.
WiseTech had made headlines for all the wrong reasons in the second half, including corporate regulators and federal police raiding company offices, a shareholder strike over executive pay, and a pension giant withdrawing its $580 million stake in the company due to ongoing governance concerns.
Co-founder, chairman and chief innovation officer Richard White, who stepped down as chief executive officer in October 2024 after denying allegations of bullying and undisclosed workplace relationships, said in Wednesday’s briefings that 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 most of my time on product design, product expansion, and commercial models of our products,” he said.
“This has always been my strength, and I now have much greater capacity and ability to drive and accelerate these results.”
An internal review by Herbert Smith Freehills and Seyfarth Shaw to examine the media allegations effectively cleared Mr. White of misuse of company funds.
The Australian Securities and Investments Commission’s investigation into allegations of potential improper trading by Mr White and three of his employees is ongoing.
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