WiseTech to cut 2000 jobs as AI tightens its grip
Sydney Morning Herald
by David SwanFebruary 25, 2026
AI-Generated Deep Dive Summary
WiseTech Global, a leading logistics software company, has announced plans to cut nearly 2000 jobs—almost a third of its workforce of 7000 employees—over the next two years. The move, led by CEO Zubin Appoo, is part of an "AI transformation program" aimed at leveraging artificial intelligence to enhance efficiency and deliver customer value faster. The restructuring will begin with significant reductions in product development and customer service teams, including recently acquired US platform e2open.
The shift reflects broader industry concerns about AI's impact on traditional software companies, as fears grow that AI-powered tools could rapidly replicate services that once required years of development. Appoo emphasized the transformative potential of AI, declaring it "the most significant shift in decades" for software engineering. The company's decision to embrace AI-driven automation is seen as a strategic response to market pressures and internal challenges, including governance issues and leadership changes.
WiseTech's financial results provided mixed signals. While revenue surged 76% to $US672 million due to the acquisition of e2open, organic growth was modest at 7%. Net profit fell by 36% to $US68.1 million, citing integration costs and amortization expenses. However, underlying profit rose 2%, excluding acquisition-related charges.
Investors initially reacted positively, with WiseTech shares rising 10.7% in early trading. Market analysts noted that the restructuring provided clarity after months of uncertainty, signaling the company's pivot to using AI for long-term profitability. The success of this transformation will hinge on maintaining product quality and customer service while achieving sustainable organic growth.
WiseTech serves over 22,000 logistics companies globally, including major third-party logistics providers. Analysts highlight the potential for significant margin expansion if the company can reduce its workforce without compromising its core offerings. However, the success of this strategy will depend on proving
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Originally published on Sydney Morning Herald on 2/25/2026