Mass layoffs using artificial intelligence are increasing at local companies, with logistics software giant Wisetech Global planning to cut around 2,000 jobs over the next 18 months.
WiseTech said some of its teams have been cut in half, with the job cuts affecting about 29% of its staff in 40 countries.
CEO Zubin Apu described this as an “intentional AI transformation journey” to analysts on an earnings call.
“Software development is experiencing the most significant change in decades,” Mr Appu said in a statement to the ASX.
”I am prepared to say this clearly. Gone are the days of manually writing code as a core engineering activity.”
He said AI is expected to deliver “a leaner, more efficient AI-driven organization that supports a structurally lower cost base and increased scalability.”
WiseTech stock rose on Wednesday following news of large-scale layoffs. (Reuters: Jason Reid)
According to its website, WiseTech now employs approximately 7,000 people worldwide, thanks to major acquisitions that more than doubled its headcount.
Customer service, product and development teams around the world will be among the first to take on this challenge, with the company predicting headcount for these teams will be reduced by up to 50%.
The 2,000 job cuts planned for the remainder of this financial year and into fiscal 2027 are unlikely to be the end of the restructuring.
“As AI capabilities continue to evolve, we expect further efficiency gains over time,” Apu said at a press conference.
“They want to understand how they can significantly reduce their workforce in AI workflow engines. [founder Richard White] They say that replicating parts of that workflow could improve it by 50% over the next few years. ”
The head of WiseTech said that more than 500 positions have already been cut during this year.
Investors welcomed the development, with shares rising 11.1% on the Australian Stock Exchange on Wednesday.
The company announced a 36% decline in statutory net profit. Underlying profit, excluding the impact of acquisitions, increased 2% to $114.5 million ($161 million).
It’s been a tumultuous few years for the software company after Mr. White stepped down as president of the company he co-founded and a personal scandal hit the headlines.
Wisetech subsequently embarked on a governance review following a series of resignations from its board of directors. It was found that Mr. White had misled the company’s board of directors about the nature of some relationships. Mr White accepted the findings.
Mr. White continues to work for the company as Executive Chairman and Chief Innovation Officer.
In October, WiseTech’s Sydney office was raided by Australian Federal Police and ASIC officers on suspicion of stock trading.
CBA cuts 300 roles, launches ‘AI-enabled’ workforce program
Elsewhere in Australia’s corporate world, the Commonwealth Bank announced late Tuesday that it would cut 300 jobs from its workforce.
The Financial Sector Union (FSU) said the job cuts will “affect retail, corporate and institutional banking teams and HR, with the majority of technology roles affected”.
“The reduction of 300 employees is completely unacceptable at a time when CBA has just surpassed $5 billion in half-year profits,” said FSU National Secretary Julia Angrisano.
“For years, we have watched CBA continue to cut hundreds of jobs while raking in billions in profits. We have heard countless stories of CBA workers being thrown into the redundancy pile and left to fend for themselves at the whims of the bank.”
At the same time, CBA announced a $90 million Future Workforce Program to help workers stay ahead of the changing nature of work and become “AI-enabled.” This includes a career portal that helps staff find job opportunities across the bank.
“We look forward to this accelerating the careers of many people within CBA,” CEO Matt Kamin said in a statement.
”Australia needs to successfully implement this technology and its successors. This is a topic we’ve been thinking about for a while.”
In August 2025, CBA was forced to reverse 45 job cuts after AI “voice bots” increased staff workload. The bank apologized, saying it was negligent.
