WiseTech Global, the Australian developer behind the CargoWise freight forwarding platform, announced plans to reduce its workforce by approximately 2,000 employees over the next two years — nearly 30% of its current headcount. The company says the move reflects productivity gains driven by artificial intelligence across product development and customer engagement.
The announcement overshadowed the company’s first-half earnings release and triggered a double-digit surge in its share price on the Australian Securities Exchange.
In a pre-recorded message, CEO Zubin Appoo described the restructuring as part of a broader transformation driven by rapid advances in AI tools — both internally developed systems and models from leading providers such as Anthropic, OpenAI and Google.
The reductions will primarily affect programming, product development and customer service roles.
“This decision was not taken lightly, but it was necessary to ensure we remain disciplined, nimble, competitive and future-ready,” Appoo said. “A transformation of this scale will fundamentally reshape our cost base while enabling a step change in productivity.”
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A Strategic Pivot: AI, Pricing Reform and Major Acquisition
The workforce reduction comes months after WiseTech implemented a sweeping pricing model change that impacted nearly all of its freight forwarder, customs broker and third-party logistics customers.
It also follows the integration of E2open, acquired for $2.1 billion last May in the company’s largest-ever transaction. The acquisition expanded WiseTech’s reach beyond 3PLs into direct shipper relationships.
Together, these moves signal a company positioning itself ahead of structural change rather than reacting to it. WiseTech appears to be preparing for a future in which AI reshapes how supply chain software is built, sold and consumed.
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A Message to the Logistics Software Market
The announcement will inevitably reverberate across the logistics technology ecosystem. Companies that build complementary automation layers around CargoWise — or compete in adjacent workflow segments — may need to reassess their cost structures in light of AI-driven efficiency gains.
Smaller software vendors, operating with tighter margins and fewer resources, are likely to examine whether their current headcount remains sustainable in an AI-accelerated environment.
Unlike privately held logistics technology firms, WiseTech must also navigate the expectations of public markets, where investor narratives increasingly focus on how AI could erode — or enhance — the value of established software providers.
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Strong Financial Performance
Despite the scale of the restructuring, WiseTech reported solid financial results for the first half of its fiscal year (July 1 to December 31):
• $672 million in revenue
• $252.1 million in operating profit
• 38% operating margin
Revenue increased 76% year over year, though much of that growth stemmed from the inclusion of E2open. Organic revenue growth stood at 12%.
The company also reduced its revenue concentration risk, with its top 20 customers accounting for 23% of revenue, down from 33% in the prior year period.
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Building an End-to-End Logistics Software Platform
WiseTech continues to pursue its ambition of creating a unified logistics software ecosystem encompassing international and domestic freight procurement, execution, payment, analytics, trade compliance and accounting.
While much of its customer base remains anchored in international forwarding and customs compliance, the strategic intent is clear: expand into a comprehensive end-to-end logistics platform.
Following the announcement of the layoffs, WiseTech shares rose 11%, suggesting investors view the restructuring as a proactive strategic adjustment rather than a defensive measure.
