WiseTech Global Cuts 2,000 Jobs in Major AI-Driven Restructuring

WiseTech Global, the Australian logistics software giant, announced significant workforce reduction plans on February 24, 2026, eliminating 2,000 positions representing 29% of its total workforce. The sweeping layoffs mark one of the largest restructuring efforts in the company's history as it pivots toward artificial intelligence automation and responds to evolving market pressures in the global supply chain technology sector.

The Sydney-based company, known for its CargoWise logistics platform used by freight forwarders and customs brokers worldwide, cited the need to streamline operations and invest heavily in AI capabilities as primary drivers behind the decision. CEO Richard White indicated the restructuring would position WiseTech Global for long-term growth while reducing operational costs amid challenging economic conditions.

Context of the Decision

The layoffs reflect broader industry trends where logistics technology companies are increasingly replacing traditional manual processes with automated AI-driven solutions. WiseTech Global's decision comes as the company faces pressure to improve profitability margins while maintaining its competitive edge in an increasingly crowded market.

The timing coincides with the company's strategic shift toward machine learning and artificial intelligence integration across its core CargoWise platform. This technological evolution has reduced the need for traditional software development roles and customer support positions, as automated systems handle more routine tasks previously managed by human employees.

Market analysts point to declining demand for traditional logistics software solutions as supply chain operations become more automated. The company's workforce reduction strategy aims to reallocate resources toward AI research and development while eliminating redundancies created by technological advancement.

Impact on Operations

The layoffs primarily affect software engineering, customer support, and administrative divisions across WiseTech Global's global operations. The company's Australian headquarters in Sydney bears the largest impact, with approximately 800 positions eliminated. International offices in the United States, United Kingdom, and Asia-Pacific regions account for the remaining cuts.

Engineering teams focused on legacy system maintenance face the most significant reductions, as the company consolidates development efforts around its next-generation AI-powered platform. Customer service departments also experience substantial cuts as automated chatbots and self-service portals replace traditional support channels.

Sales and business development teams remain largely intact, reflecting the company's continued focus on market expansion and customer acquisition. The restructuring preserves key client-facing roles while eliminating back-office functions deemed non-essential to core operations.

Company Financial Background

WiseTech Global has experienced volatile financial performance over the past two years, with revenue growth slowing from pandemic-era highs. The company's stock price declined 15% in 2025 as investors expressed concerns about increased competition and market saturation in the logistics software space.

Despite generating over $800 million in annual revenue, the company faced pressure from institutional investors to improve profit margins and operational efficiency. The workforce reduction is expected to save approximately $180 million annually in labor costs, directly addressing shareholder concerns about expense management.

The company's recent quarterly earnings showed flat growth compared to the previous year, prompting management to accelerate cost-cutting measures and strategic realignment initiatives. WiseTech Global's market capitalization of $12 billion positions it as a major player in the logistics technology sector, but increased competition from emerging AI-focused startups has intensified pressure for innovation.

Industry Outlook

The logistics software industry faces unprecedented disruption as artificial intelligence transforms traditional supply chain operations. WiseTech Global's layoffs mirror similar workforce reductions at competitors including Oracle Transportation Management and SAP's logistics division.

Industry experts predict continued consolidation as established players adapt to AI-driven automation trends. Companies investing heavily in machine learning capabilities are expected to gain competitive advantages over traditional software providers relying on manual processes.

The shift toward AI automation represents both opportunity and challenge for logistics software companies. While operational efficiency improves, the transition requires significant upfront investment and workforce restructuring to remain competitive in the evolving market landscape.

Conclusion

WiseTech Global's workforce reduction signals a decisive move toward AI-powered logistics solutions while addressing immediate financial pressures. The company's strategic pivot positions it for future growth in an increasingly automated industry, though the transition involves significant short-term disruption for affected employees and operations. Success will depend on WiseTech Global's ability to execute its AI transformation while maintaining customer satisfaction and market share during this critical restructuring period.