WiseTech Global’s 11% jump this week wasn’t driven by a surprise earnings beat, but by a major shift in how the company plans to operate. This article breaks down the 2,000-job AI restructure, what it means for margins and execution risk, and why the move matters for ASX tech investors beyond WiseTech.
WiseTech Global (ASX: WTC) surged 11% in a single session this week, not on a big contract win or a revenue surprise, but on announcing plans to cut approximately 2,000 jobs. The market cheered. The reason? Those roles are being replaced by AI agents, marking one of the boldest workforce transformations on the ASX to date.
For investors watching the ASX tech sector, this isn't just a WiseTech story. It's a signal of how AI is starting to reshape real companies, real margins, and real valuations across the Australian market.
The global tech landscape is shifting fast. Companies are no longer just building AI; they're using it to restructure how they operate fundamentally.
NVIDIA's latest quarterly results showed 73% revenue growth, confirming that demand for AI infrastructure remains strong. Morgan Stanley projects that hyperscaler capital expenditure could reach 45% of sales by 2028, with over US$2 trillion in cumulative spending expected. But the next wave isn't about who builds AI, it's about who uses it best.
That's exactly where WiseTech is positioning itself. And the ASX tech sector is watching closely. The broader S&P/ASX 200 Information Technology Index surged 5.2% in Thursday's session alone, driven by renewed confidence in the AI trade. Names like Xero and TechnologyOne rallied alongside WiseTech, suggesting the market sees this trend as sector-wide, not company-specific.
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WiseTech's H1 FY26 results told two stories. On the surface, statutory net profit fell 36% to US$68.1 million, weighed down by non-cash charges and integration costs from the e2open acquisition completed in August 2025. But look deeper, and the picture changes.
Total revenue surged 76% to US$672 million, with its core CargoWise platform growing 12% to US$372.4 million. EBITDA climbed 31% to US$252.1 million. Free cash flow rose 24% to US$153.6 million. The company also reaffirmed full-year guidance: revenue of US$1.39–1.44 billion and EBITDA of US$550–585 million.
Then came the headline announcement. CEO Zubin Appoo confirmed that WiseTech would reduce headcount in product development and customer service by up to 50%, resulting in approximately 2,000 role reductions across FY26 and FY27. The efficiency program is already underway, with more than 500 roles removed in H1 FY26. The remaining reductions will be phased through H2 FY26 and into FY27, with AI agents designed to automate coding tasks, reduce client support tickets, and scale the CargoWise platform without adding labour costs.
WiseTech's software already supports roughly 80% of global manufactured trade flows across 193 countries. Management argues that AI makes deeply embedded, regulated systems even more valuable, not less.
The market's reaction was decisively positive. But the debate around WiseTech remains heated.
The bull case centres on margin expansion. If AI agents successfully replace manual coding and support functions, WiseTech's EBITDA margin, currently at 38% with an exit run rate target of 43–44%, could expand meaningfully. Bell Potter retains a buy rating with an A$83.75 price target. The company has 59 large global freight forwarders as customers, with 46 in production and 13 in contracted rollouts.
The bear case is execution risk. Cutting an estimated 29% of total headcount over 18 months is enormously complex. Service quality could suffer during the transition. The stock trades at roughly 51 times trailing earnings and 13 times sales, valuations that assume near-perfect delivery. And WiseTech shares remain down significantly from their late 2024 record highs, reminding investors that sentiment can shift quickly in either direction.
WiseTech's move could set the template for how ASX tech companies restructure in the AI era. Whether it's a masterstroke or a misstep will become clearer over the next 18 months, but the signal it sends to the broader market is already loud.
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