Australian software company WiseTech Global has announced plans to cut approximately 2,000 jobs over a two-year restructuring program, a reduction that represents nearly a third of its global workforce. The move, which the company links directly to integrating artificial intelligence into both its products and internal processes, will affect its roughly 7,000 employees spread across 40 countries.
The job reductions - which the company said will touch roles in product and development and customer service, and could pare some teams by as much as half - are part of a strategic shift to automate routine tasks and accelerate software innovation using AI tools.
Shares in WiseTech reacted positively on the announcement day, closing 11.1% higher at A$47.74. Australia’s benchmark S&P ASX 200 also rose 1.2% on the same session. The company reported underlying net profit for the first half of A$114.5 million, which it said was 6% ahead of market consensus, and declared an interim dividend of 6.8 cents while reaffirming its full-year outlook.
WiseTech highlighted that the restructuring will affect around 29% of its global staff. One significant area of impact will be its U.S. cloud computing unit, E2open, which WiseTech acquired in August for $2.1 billion; the division could see cuts of up to 50%.
Chief Executive Officer Zubin Appoo framed the changes as a fundamental shift in software engineering. "Software development has experienced its most significant shift in decades," he said. "The era of manually writing code as the core act of engineering is over."
The layoffs at WiseTech have been described as among the largest AI-linked job reductions in Australia to date and come amid a broader wave of corporate redundancies tied to automation and cost rationalisation. The article noted that, last month, Amazon announced 16,000 job cuts worldwide in a second round of redundancies, underscoring how rapidly automation tools are being adopted across industries.
Despite the positive market reaction following the results and restructuring announcement, WiseTech’s shares remain 68% below their November 2024 peak. That sustained weakness has been driven in part by allegations related to the company’s founder and former CEO, Richard White, including claims involving payments to an alleged former lover, which have prompted investor departures. Concerns about how AI will affect the company’s business model have also weighed on the stock.
Market commentators cited persistence in the company’s underlying trajectory despite the disruption. "With recent share price weakness was 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.
Contextual note: The company reiterated its fiscal guidance while announcing the planned headcount reduction and maintaining an interim dividend.