WiseTech flags redundancies as it restructures to double down on AI

WiseTech Global has told employees it is increasing the use of artificial intelligence across the business as part of a broad restructure of the ASX-listed logistics software giant that will result in redundancies.

In a note on Tuesday, WiseTech chief of staff Zubin Appoo said the company had made the decision after “a deep assessment of our operating model, teams, roles, skills and processes”.

“The result of the assessment means we will conduct a phased restructure program across all functions of the business and all regions. There will likely be several phases across the business, and we will communicate these as soon as possible,” Appoo wrote in the email to staff.

WiseTech employs about 3500 people around the world. The first phase of restructure will focus on the product development and customer service divisions, and the WiseTech Academy in Australia, India, the United States and China. WiseTech Academy offers certification and training for using the company’s products such as CargoWise, which helps co-ordinate freight.

It is unclear how many roles will be made redundant.

Fundie View - ECP Growth manger:

Wisetech (WTC) outperformed in May following the speculation & confirmation of an acquisition offer for US listed peer E2open, on a significantly lower earnings multiple. While E2open hasn't shown standalone growth, and comprises a number of acquisitions historically accumulated by the listed prior listed entity, we think the value can be enhanced in WTC's hands over time, primarily due to the data assets E2open comprises. One simple example is its ownership of Avantida (part of its INTTRA platform acquired in 2018) which has a 21% share in global ocean freight bookings plus a container reuse platform used by 13 ocean carriers in 37 countries. Ownership and control could enhance the rollout of Wisetech’s key project Container Transport Optimisation in major markets, owing to the additional container-related movement data