Australian logistics software company WiseTech Global has announced plans to cut around 2,000 jobs as it accelerates the adoption of artificial intelligence across its operations. The layoffs are set to begin in the second half of fiscal year 2026 and continue into 2027. The company aims to reduce teams in product development and customer service by up to half, affecting roles across its entire organization, including e2open. Employees affected by the cuts will not be redeployed within the company, WiseTech confirmed.

AI’s Impact on Software Engineering and Workforce Strategies

Chief Executive Zubin Appoo stated that software development is undergoing its most significant transformation in decades. He declared that the era of manually coding software is coming to an end, emphasizing how artificial intelligence is now central to the company’s strategy. WiseTech makes CargoWise, a supply chain management platform used by over 22,000 companies worldwide, including many of the largest freight forwarders. Appoo highlighted that AI enhances productivity by leveraging WiseTech’s extensive data and network advantages built over 30 years.

However, industry analysts advise caution. Sanchit Vir Gogia, CEO of Greyhound Research, pointed out that the claim about manual coding being obsolete is more of a strategic message than a technical conclusion. While AI has indeed sped up workflows, Gogia suggests its primary role now is to justify a major cost restructuring. AI is being positioned not just as a tool for augmentation but as a key driver for workforce reduction strategies across industries.

Broader Industry Trends and Corporate Restructuring

WiseTech’s decision aligns with a wider trend among tech giants. Last year, Salesforce reduced its customer support staff from around 9,000 to 5,000, citing AI as a key factor. Microsoft announced plans to cut approximately 15,000 jobs in 2025, with CEO Satya Nadella noting that AI tools now handle up to 30% of the company’s coding work. In the US alone, nearly 55,000 layoffs in 2025 were linked to AI-driven efficiency efforts, with many boards pushing executives to cut costs by 20% or more.

These large-scale layoffs reflect a shift in how companies view AI. Instead of being just an enhancement, AI is now a central part of workforce planning. WiseTech’s layoffs mark a significant move in this direction, especially for software vendors serving enterprise clients. The focus is increasingly on using AI to streamline operations and reduce labor costs, affecting entire industries and their supply chains.

This trend also raises questions for WiseTech’s clients. Many of their largest freight forwarding customers currently have less than 20% of expected users actively on CargoWise, which could impact service continuity. As companies adopt AI-driven changes, they face new risks related to operational stability and the need to adapt their digital infrastructure quickly.

Overall, WiseTech’s approach signals a major shift in how software companies are leveraging AI. The emphasis is moving from simple feature updates to fundamental changes in workforce and operational models. For CIOs and business leaders, this means preparing for a future where AI plays a central role in reducing costs and reshaping industry standards. The coming years will likely see more companies following suit, with workforce reductions becoming a common response to the efficiencies AI can deliver.

Inspired by

• https://www.computerworld.com/article/4137200/australias-wisetech-to-cut-2000-jobs-as-ai-renders-manual-coding-obsolete.html

Sources

• wisetechglobal.com
• cio.com
• challengergray.com
• cio.com
• cio.com