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AI Revolution: WiseTech Cuts 2,000 Jobs
25 Feb
Summary
- WiseTech Global plans to eliminate approximately 2,000 jobs.
- CEO states manual coding era is over due to AI.
- Company stock has fallen 37% this year amid AI concerns.
WiseTech Global Ltd. is set to reduce its workforce by approximately 2,000 employees as part of a strategic revamp driven by artificial intelligence.
Chief Executive Officer Zubin Appoo announced that the traditional method of manual coding is obsolete, emphasizing that AI enables greater automation and efficiency gains.
The company's stock has experienced a considerable decline, dropping 37% in the current year. This downturn is attributed to investor apprehension about AI rendering WiseTech's existing freight-software redundant.
However, Appoo reassured stakeholders that AI integration will allow WiseTech to deliver enhanced value and deepen its embeddedness within customer operations. The planned job cuts are scheduled to take place throughout the current and upcoming fiscal years.
WiseTech reported a 2% increase in underlying net profit, reaching A$114.5 million for the six months concluding December 31. This financial update follows a period of scrutiny for the company.
Previously, WiseTech faced allegations concerning the conduct of its founder and former CEO, Richard White, which emerged in late 2024. Zubin Appoo assumed the CEO role in July of the previous year, partly to address governance issues raised by investors. Richard White currently serves as WiseTech's chairman.
