International logistics software program firm WiseTech International will slash about 2000 jobs because it leans into synthetic intelligence, as fears round AI disruption loom over native know-how shares.
The cuts, which quantity to greater than 1 / 4 of the group’s 7000 headcount unfold throughout 40 international locations, can be targeted on engineers writing code, chief govt Zubin Appoo stated.
“I’m ready to say this clearly, the period of manually writing code because the core act of engineering is over,” Mr Appoo informed an earnings briefing on Wednesday.
The announcement got here as WiseTech grew its first-half income by 76% to $US672 million ($A951 million).
The result supported a bottom-line web revenue of $US106.4 million ($A150.3 million), down 36% on the equal half, which was impacted by the acquisition of provide chain software program e2Open.
Working money stream within the six months to December grew 31% to $US192.3 million ($A272.4 million), and underlying web revenue grew 2% to $US112.1 million ($A158.8 million).
“We executed with self-discipline and delivered outcomes consistent with our expectations, and we’re assured in our outlook,” Mr Appoo stated.
WiseTech has been constructing towards its AI transformation for a while.
Final 12 months, it constructed quite a few AI brokers into its Cargowise platformm which is utilized by greater than 17,000 freight forwarders and logistics suppliers to handle shipments world wide.
The CEO acknowledged the impression of the continued AI transition on outgoing workers.
“This determination was not taken calmly, however it’s essential to make sure we stay disciplined, nimble, aggressive and future prepared,” Mr Appoo stated.
WiseTech selected to not immediately deal with former karaoke machine firm Algorhythm Holdings, whose SemiCab platform claimed to have the ability to scale clients’ volumes by as much as 400% with out decreasing headcount.
That announcement despatched international tech shares right into a tailspin and shifted the AI narrative from one in all effectivity to one in all disruption, elevating the significance of buyers avoiding losers over backing winners from the technological revolution.
Traders welcomed WiseTech’s outcomes and the replace, with its shares rebounding greater than 4% to $45 in morning commerce, after tumbling by greater than 60% since July 2025.
Mistaken headlines
WiseTech had made headlines for all of the improper causes within the second half, together with an company regulator and federal police raid of firm places of work, a shareholder strike on govt pay and a superannuation large unloading its $580 million stake within the firm over ongoing governance issues.
Co-founder, govt chair and chief innovation officer Richard White, who stepped down as chief govt in October 2024 amid allegations of bullying and undisclosed office relationships, which have been denied, informed Wednesday’s briefings he was in the fitting place.
“Today, my function and focus as chief innovation officer, supported by our CEO, Zubin, and a extremely motivated senior management staff, permits me to spend nearly all of my time on product design, product growth and the industrial fashions of our merchandise,” he stated.
“This has all the time been my energy, and I now have far higher capability and functionality to drive and speed up these outcomes.”
An inner assessment by Herbert Smith Freehills and Seyfarth Shaw to look at the media allegations successfully cleared Mr White of any misappropriation of firm funds.
An Australian Securities and Investments Fee probe into allegations of potential improper buying and selling by Mr White and three workers is ongoing.
AAP
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