SYDNEY, Australia: Australian software company WiseTech Global will cut about 2,000 jobs, nearly a third of its global workforce, as part of a two-year restructuring driven by artificial intelligence, in what could be one of the country's largest AI-related job reductions.
The Sydney-based firm, which develops shipping and logistics management software, said the overhaul will affect around 29 percent of its roughly 7,000 employees across 40 countries. Some teams could be reduced by as much as half, beginning with product and development, as well as customer service roles.
WiseTech also signaled that its U.S. cloud computing arm, E2open, acquired in August for US$2.1 billion, could see cuts of up to 50 percent.
"Software development has experienced its most significant shift in decades," Chief Executive Officer Zubin Appoo said.
"The era of manually writing code as the core act of engineering is over."
The company plans to integrate AI into both its customer-facing software and its internal operations, as automation tools increasingly take on routine administrative tasks and complex coding work. The move underscores the speed at which AI is reshaping workplaces globally.
Last month, Amazon announced 16,000 job cuts worldwide in its second round of redundancies in three months, adding to broader layoffs by U.S. companies across sectors this year.
Despite announcing the workforce reductions, WiseTech's shares rose 11.1 percent to A$47.74 on February 25 after the company reported a stronger-than-expected first-half profit. Australia's benchmark S&P ASX 200 index gained 1.2 percent on the day.
WiseTech posted first-half underlying net profit of $114.5 million, beating market consensus by 6 percent. The company declared an interim dividend of 6.8 cents and reaffirmed its full-year guidance.
Founded more than three decades ago, WiseTech has faced pressure over the past year. Its shares remain about 68 percent below their November 2024 peak, following allegations involving founder and former CEO Richard White, including claims of payments to an alleged former lover. The controversy triggered investor concerns over corporate governance.
At the same time, uncertainty around how AI would impact the software maker weighed on the stock.
"With recent share price weakness being more governance-driven than fundamental, and with the fiscal 2026 guidance reaffirmed, the underlying trajectory remains sustainable despite near-term disruption," said Marc Jocum, senior product and investment strategist at Global X ETFs.
The planned cuts position WiseTech among a growing list of technology companies restructuring around AI to boost efficiency and remain competitive in a rapidly evolving industry.
