Rudi Filapek-Vandyck (FNArena) posted the following report from a RBC Capital note on $WTC yesterday.

A pretty negative development … we all knew it was a possibility, but this looks like a key customer will transition away from Cargowise onto their own in-house platform.

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extracted text from X post;

RBC Capital on WiseTech Global $WTC: "After months of back-and-forth DSV have finally settled on moving over to Tango and confirming their intentions to eventually transition out of CargoWise. 

"Despite management remaining strategically ambiguous on the timeline - even going so far as to say that their Tango rollout plan has not been internally signed off yet - we understand their resolve to consolidate all of their vendor-based software into a unified in-house platform under the banner of their "Count to One" strategy (One Process, One System). 

"As highlighted in our recent note, based on industry feedback, our current base case is for migration to take ~5-6 years with an estimated impact to CargoWise of ~$40-50m, most of which should fall through to the bottom line as licencing revenue. 

"Migration will not be without short-term pain, as DSV are running some middleware on top of Tango and CargoWise to ensure they are synced for incremental new business, which necessitates a productivity drag and introduces inefficiencies like double-entry in the short term. 

"Tango also confirmed to be currently running ~25% of group volumes."

Disc: Held (RL now a small position)

Discl: Held IRL 3.78%

Good to note that Maree Isaacs bought into the dip recently into her Trust at $37.16, tipping in $393.0k, just shy of doubling her direct holdings of shares. Thought it was a rights conversion as there was a whole blurb on Pg 2 of the notice but does not look like it.

She timed it very nicely!

From the AFR:

WiseTech cites AI as it axes 2000 developer and customer service jobs

WiseTech Global is axing up to 2000 jobs and says artificial intelligence has reduced the need to have developers and customer service staff in what the software giant has described as the “most significant shift in decades”.

The cuts represent almost 30 per cent of the company’s headcount, with WiseTech telling investors that the number of staff in some teams would be halved. The first to be cut are development and customer service teams at e2open, a business WiseTech acquired for $3.2 billion last year.

It's possible they genuinely have found they need less staff for customer service and some development tasks. However, I'm always a little skeptical of these announcements that they are using AI as a cover. How many of the job losses "due to AI" are going to be followed by an increase in headcount in a a location with lower labour costs?