WiseTech Pops ~10% as it plans to cut 2000 jobs
WiseTech Global plans to slash ~2,000 roles — nearly 30% of its 7,000-strong workforce — as it accelerates an AI-driven overhaul of its operations. CEO Zubin Appoo declared that “the era of manually writing code… is over,” signalling a structural shift toward automation across the business. The move represents the largest AI-related workforce reduction announced in Australia to date and underscores how rapidly artificial intelligence is reshaping the global software sector.
Such is the nature of AI at the moment the company’s earnings hardly got a mention in many financial posts:
- 1H revenue of $672mn v $381mn, +76% YoY.
- Recurring revenue 95% v 98% Yoy.
- 1H underlying Net Profit $114.5mn v $112.1mn YoY.
- Ebitda $256.3mn, +33% YoY.
- They reaffirmed annual revenue and earnings guidance.
WTC shares jumped as much as 11% in early trade, with investors focusing on margin expansion and efficiency gains. The stock had previously fallen ~37% this year amid concerns that AI disruption could threaten traditional software models.
The market is rewarding cost-out + productivity leverage, but the key question moving forward remains whether AI enhances WiseTech’s competitive moat — or ultimately compresses it – we are leaning towards the former.
