WiseTech cuts 1,700 jobs, says AI is the reason
Australian logistics software firm WiseTech Global defended its decision to cut 1,700 jobs, roughly a quarter of its workforce, as it reported record annual revenue of $1.4 billion, up 79% year-on-year. The company attributed the cuts to an AI transformation that has already saved $34 million, alongside $64 million in savings from its e2open acquisition. Despite the revenue surge, net profit fell 11% to $178.7 million, and shares dropped nearly 7% after an earnings miss in its core CargoWise product. CEO Zubin Appoo emphasized that AI cannot replicate the company's proprietary data and network, but the move highlights a growing trend of tech firms using AI to justify large-scale layoffs even amid strong financial performance. Key signal: WiseTech Global cut 1,700 jobs (about 25% of its workforce) while reporting record revenue of $1.4 billion, up 79%. For hiring leaders, WiseTech's actions are a stark signal: AI is not just augmenting roles but replacing them at scale, even in profitable companies. The 1,700 job cuts, concentrated in product development and customer service, show that AI's impact is hitting core tech functions, not just back-office tasks. This raises urgent questions about workforce planning: how to reskill employees, what roles are truly AI-proof, and how to balance cost savings with innovation capacity. As more companies follow suit, talent strategies must pivot to emphasize uniquely human skills and proprietary data advantages, while preparing for potential backlash from employees and regulators. Teksands view: WiseTech's move is a wake-up call for every tech employer. Cutting 25% of your workforce while revenue soars is a bold bet that AI can replace human judgment in product and support roles. The market's negative reaction suggests investors aren't fully convinced. For hiring leaders, the lesson is clear: AI-driven efficiency is inevitable, but the execution matters. Blindly slashing headcount can backfire if it undermines product quality or customer trust. Instead, use AI to augment your teams, not just replace them, and invest in reskilling to retain institutional knowledge. The companies that get this balance right will win the talent war.
Key fact
WiseTech Global cut 1,700 jobs (about 25% of its workforce) while reporting record revenue of $1.4 billion, up 79%.
Why it matters
For hiring leaders, WiseTech's actions are a stark signal: AI is not just augmenting roles but replacing them at scale, even in profitable companies. The 1,700 job cuts, concentrated in product development and customer service, show that AI's impact is hitting core tech functions, not just back-office tasks. This raises urgent questions about workforce planning: how to reskill employees, what roles are truly AI-proof, and how to balance cost savings with innovation capacity. As more companies follow suit, talent strategies must pivot to emphasize uniquely human skills and proprietary data advantages, while preparing for potential backlash from employees and regulators.
The Teksands point of view
WiseTech's move is a wake-up call for every tech employer. Cutting 25% of your workforce while revenue soars is a bold bet that AI can replace human judgment in product and support roles. The market's negative reaction suggests investors aren't fully convinced. For hiring leaders, the lesson is clear: AI-driven efficiency is inevitable, but the execution matters. Blindly slashing headcount can backfire if it undermines product quality or customer trust. Instead, use AI to augment your teams, not just replace them, and invest in reskilling to retain institutional knowledge. The companies that get this balance right will win the talent war.
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