Australian Tech Giant WiseTech Plans Massive Layoffs Amid AI Transformation

Over the next two years, WiseTech Global, an Australian logistics software business, plans to let off roughly 2,000 employees as it makes a significant shift to artificial intelligence. Consequently, it has reshaped over one-third of its global staff. About 29% of employees in 40 countries will be impacted by the layoffs, with some teams perhaps seeing a 50% reduction.

As of June 30, 2025, WiseTech employed about 3,600 individuals worldwide. The implementation of AI in the company's internal operations and software platforms will initially affect customer service and product and development jobs.

AI Most Significant Transformation in Decade: Appoo

Zubin Appoo, the chief executive, called the change the biggest in decades. He says the biggest change in decades has occurred in software development. He went on to say that the days of creating code by hand as the primary engineering task are finished. According to Appoo, AI would enhance the business's network advantages, logistics know-how, and proprietary datasets, facilitating quicker product creation and better customer results. E2open, the US-based cloud computing company that WiseTech just acquired, is anticipated to be among the most severely impacted divisions.

The staff of the unit may be reduced by as much as 50% as automation and integration activities pick up speed. WiseTech's financial results were mixed at the time of the restructuring. In the six months ending December 31, net profit dropped 36% to US$68.1 million, mostly as a result of E2open integration expenses. However, underlying profit increased 2% to US$114.5 million, while revenue increased 76% to US$672 million. On April 10, the business said that it would pay an interim fully franked dividend of 6.8 cents per share.

AI Transforming Operations of Global Tech Firms

Since AI solutions automate coding, workflow management, and customer care, industry analysts think the trend signals a larger structural shift in global technology and services organisations. Instead of being a cyclical cost-cutting exercise, the adjustments constituted a structural reset of the staff, according to Richard Valente, Australian vice-president of customer experience strategy at TP. The days of big, transaction-processing teams are coming to an end, according to Valente. He added that managing AI systems, assessing intricate data, and stepping in when automation fails would become more and more important in future positions.

The redesign of WiseTech highlights the mounting conflict between the social cost of job displacement and the productivity gains from AI. Businesses are under increasing pressure to strike a balance between efficiency and retraining and redeployment as automation speeds up throughout the technology sector. In a logistics sector that is changing quickly, WiseTech's AI-led transformation will be put to the test over the next two years to see if it can continue growth while preserving customer confidence and operational resilience.