Pinned straw:
Yeah, I’m with you @Ipsum — companies absolutely can use “AI transformation” as a convenient wrapper for decisions they were going to make anyway. It’s a great narrative shield. But I also think we need to hold two ideas at once.
First: yes, some of these cuts will quietly reappear in lower‑cost jurisdictions. That pattern is older than AI. Any time a company wants to reset its cost base, “technology-driven efficiencies” is the friendliest way to frame it.
Secondly: AI really is removing a huge amount of headcount — especially in the exact areas WiseTech is cutting first.
Customer service, L1/L2 support, documentation, testing, and a big chunk of routine development work are all being eaten alive by agentic workflows. You don’t need 200 people triaging tickets when an AI agent can resolve 70–80% of them instantly and escalate the rest with full context. And you don’t need the same number of engineers when AI can scaffold features, write tests, and refactor codebases at scale.
So I’m sceptical of the PR spin, but I’m not sceptical of the underlying trend.
AI really does reduce the need for large teams.
The companies that admit it early will look harsh now but probably end up more competitive later.
The interesting question for me is whether this is the start of a broader pattern across SaaS — because if WiseTech is openly saying “we need far fewer developers”, you can bet every other CEO is thinking the same thing, even if they’re not saying it out loud.
Disclaimer: I hold WTC
Having listened to the H1 call there is a fundamental improvement in productivity in the customer service and product development areas due to AI (not job shifting). Also this in not just something that they have thought up since the share price went south in the last 6 months. Below is AI journey they have taken which Richard talked to:
I don’t have time currently for a full write up on the H1 results and presentation but this is the general “vib” I have which follows hand in glove with how I felt coming out of the December Investor Day.
Wisetech is becoming the Microsoft of global logistics and trade, ie the operating system for moving and managing inventory around the world. It is doing this by creating enormous value for customers in terms of systems and efficiency which it will through ongoing enhancements capture a large portion of the value created. It is also looking internally for those efficiencies and in both cases AI is a significant value driver. In short revenue per customer will grow significantly, the attraction for new customers will become irresistible and the cost base to grow and provide this will shrink with an expectation to return to 50%+ EBITDA margins in the short to medium term.
I am exceptionally bullish on Wisetech, seeing it as well placed to dominate global logistics, drive down the cost of global logistics and capture a large portion of the value created. The 2000 job reduction could save ~US$200m a year, ie basically double current profit (not until FY27 and I wouldn’t be that aggressive in any forecasting, but it is very material).
I have an overweight position and am looking to add more at the current price if I can free up some capital.
Disc: I own RL+SM