Australian Tech Company Eliminates 2,000 Jobs Due to AI Automation

WiseTech Global, an Australian logistics software company, announced it will eliminate approximately 2,000 positions over two years as artificial intelligence takes over tasks previously done by humans. The job cuts represent nearly one-third of the company's global workforce of 7,000 employees across 40 countries.

An Australian technology company has announced plans to eliminate roughly 2,000 positions worldwide over the next two years, representing one of the largest AI-related workforce reductions in the country’s history.

WiseTech Global, which develops logistics and shipping management software, revealed the significant downsizing affects approximately 29% of its 7,000 employees spread across 40 nations. The company’s stock price jumped 11.1% following the announcement, closing at A$47.74 on Wednesday.

The massive layoffs underscore the rapid transformation occurring in workplaces worldwide as artificial intelligence technology becomes more sophisticated, taking over routine administrative duties and complex programming tasks with greater efficiency and accuracy.

This trend extends beyond Australia, with major corporations like Amazon recently announcing 16,000 job eliminations globally in their second round of cuts within three months, contributing to a broader pattern of workforce reductions across various industries.

WiseTech plans to incorporate AI technology into both customer-facing software and internal business processes. The reductions will particularly impact product development, engineering, and customer service departments, with some teams potentially losing up to half their staff members.

The company’s U.S. cloud computing division, E2open, which WiseTech purchased for $2.1 billion last August, may experience cuts reaching 50% of its workforce.

“Software development has experienced its most significant shift in decades,” stated WiseTech CEO Zubin Appoo.

“The era of manually writing code as the core act of engineering is over.”

Despite the workforce reduction announcement, WiseTech reported strong financial performance for the first half of the year, with underlying net profits reaching $114.5 million, exceeding market expectations by 6%. The company also declared an interim dividend of 6.8 cents and maintained its full-year financial projections.

However, the company’s stock remains significantly depressed, trading 68% below its November 2024 peak. This decline followed controversy surrounding founder and former CEO Richard White, including allegations of improper payments to a former romantic partner, which prompted many investors to sell their holdings. Additional concerns about AI’s impact on the software company’s future also contributed to the stock’s poor performance.

According to Marc Jocum, a senior investment strategist at Global X ETFs, “With recent share price weakness was more governance-driven than fundamental and with the fiscal 2026 guidance reaffirmed, the underlying trajectory remains sustainable despite near-term disruption.”

WiseTech, established more than thirty years ago, joins a growing list of technology companies restructuring their operations to adapt to the rapidly evolving artificial intelligence landscape.