Local tech company defends AI job cuts as revenue soars

An Australian technology company has stood behind cutting 1700 jobs in favour of artificial intelligence, as it raked in record annual revenue.

Logistics software provider WiseTech Global's total income surged 79 per cent to $US1.4 billion ($A19.5 billion) in the year to June 30, supported by its buyout of Texas-headquartered supply chain player e2open.

The acquisition helped deliver $64 million in annualised operating profit savings, while its artificial intelligence transformation had cut $34 million from the balance sheet, chief executive Zubin Appoo said.

"AI has fundamentally changed how we build products, support customers, and work across WiseTech," Mr Appoo told analysts at a Wednesday earnings briefing.

WiseTech cut 500 jobs globally earlier in the year under an efficiency program, before months later axing around 1200 more roles, mainly in product development and customer service.

The cuts amounted to roughly one in four of the company's formerly 7000-strong headcount, and resulted in Mr Appoo being targeted with personal insults and a hand-written threat of violence in May.

Despite the record inflows, the company's bottom line profit fell 11 per cent to $US178.7 million ($A249.3 million).

Responding to the perceived threat of AI to software providers, Mr Appoo noted WiseTech's customs solutions — which covered around four fifths of global manufactured trade flows across 193 countries — could not be replicated.

"We track more than 95 million ocean containers, we connect over 500,000 enterprises, more than 400 airlines, over 160 ocean carriers, and every class-one railroad in North America," Mr Appoo said.

WiseTech's underlying net profit after tax grew 29 per cent to $US313.5 million, with a similar improvement in earnings per share to 94 US cents ($A1.31).

The company announced an improved 8.8 US cent (12.3 cent) dividend, but it wasn't enough to excite investors, who sent WiseTech shares almost seven per cent lower to $42.32 in early trade.

An earnings miss in its core CargoWise product had likely weighed, after its 11 per cent revenue growth undershot consensus estimates and the 14-21 per cent guidance range, RBC Capital Markets analyst Jackson Lee said.

WiseTech's result came just a week after its Sydney office was raided by the Australian Competition and Consumer Commission over alleged competition and consumer law breaches.

In October 2025, the Australian Securities and Investments Commission and Australian Federal Police also searched the premises over allegations of improper trading by WiseTech's billionaire co-founder Richard White and three employees.