WiseTech Global Slashes 2,000 Jobs as AI Disrupts Software Engineering

The announcement by WiseTech Global to eliminate 2,000 engineering positions marks a definitive turning point in the relationship between artificial intelligence and the global software industry. By cutting more than a quarter of its 7,000-strong workforce, the logistics software giant is signaling that the era of human-centric manual coding is rapidly concluding. CEO Zubin Appoo’s declaration that manual coding is no longer the "core act of engineering" serves as a stark warning to the broader technology sector: AI is no longer just a productivity enhancer; it is becoming the primary architect of software infrastructure.

This restructuring comes at a time of significant financial expansion for the company. WiseTech reported a 76% increase in first-half revenue to $US672 million, driven largely by its dominant Cargowise platform and the integration of the e2Open acquisition. However, the 36% dip in net profit to $US106.4 million highlights the costs associated with aggressive scaling and the necessity of finding operational efficiencies. By leaning into AI, WiseTech aims to maintain its competitive edge while managing a massive global footprint that spans 40 countries. The move is a calculated bet that AI agents can maintain, and even accelerate, the development of complex logistics software with a fraction of the traditional human overhead.

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WiseTech reported a 76% increase in first-half revenue to $US672 million, driven largely by its dominant Cargowise platform and the integration of the e2Open acquisition.

The broader market reaction reflects a growing anxiety over the "disruption" narrative. For years, AI was marketed to investors as a tool for "efficiency"—helping workers do more in less time. The WiseTech announcement, coupled with the recent claims from Algorhythm Holdings regarding its SemiCab platform, has shifted that perception toward "replacement." When a company can grow revenue by nearly 80% while simultaneously shedding 28% of its technical staff, the traditional valuation models for software companies—often based on headcount-to-revenue ratios—must be entirely re-evaluated.

Industry peers are now under immense pressure to follow suit. The logistics technology space is particularly susceptible to this shift, as it relies on processing vast amounts of data across fragmented global networks—a task perfectly suited for the AI agents WiseTech has been embedding into Cargowise. The integration of these agents last year was the precursor to today’s layoffs, proving that the company had already tested the viability of an AI-first engineering model before pulling the trigger on personnel cuts.

Looking ahead, the focus will shift to the quality and stability of WiseTech’s software output. While the financial markets may cheer the improved margins in the short term, the long-term risk lies in the potential loss of institutional knowledge and the "black box" nature of AI-generated code. Investors should watch for WiseTech’s full-year guidance to see if these cost savings translate into accelerated R&D or are simply a defensive move to protect the bottom line amidst a cooling global tech market. The "writing on the wall" for coders is clear: the value of a software engineer is migrating from the act of writing code to the act of managing the AI that writes it.