AI is shaking things up in the workforce. For WiseTech Global, that means slashing about 2,000 jobs over the next 18 months as part of a major shift towards automation. The company, a giant in logistics software, is saying goodbye to an era where coding was done by hand and hello to an AI-powered future. But what does this really mean for the workers and the company itself?
AI’s Impact on Employment
WiseTech, which employs around 7,000 people worldwide, is set to reduce its headcount by nearly 30%, affecting around 2,000 employees across 40 countries. CEO Zubin Appoo described the layoffs as part of a “deliberate AI transformation journey,” signaling a clear move away from manually writing code. “The era of manually writing code as a core act of engineering is over,” he said to ABC News. Appoo believes this change will make the company leaner, more efficient, and capable of scaling more effectively as it taps into the full potential of AI.
While this decision may sound like the typical cold-blooded corporate move, it’s worth noting that the company believes the shift will reduce costs in the long run. But, of course, there’s a human side to this too. Thousands of workers, primarily in customer service and development teams, will face the brunt of these cuts, with some departments seeing up to a 50% reduction in staff.
The Uncertain Future of Work
So, what does this mean for the future? For WiseTech, it’s about efficiency. The company sees AI as a key to future growth, where repetitive, manual tasks can be automated, freeing up workers to focus on more strategic, higher-level roles. As AI continues to advance, WiseTech expects to see even greater efficiency gains, potentially cutting labor costs by up to 50% in the coming years.
However, with this drastic shift, there’s no denying the uncertainty for workers. The layoffs come at a time when WiseTech is still dealing with the aftermath of scandals involving its founder Richard White, who recently stepped down from the role of CEO. His departure and the company’s recent struggles with governance and board changes have added to the complexity of this transformation.
What’s Next for WiseTech?
The restructuring at WiseTech is just one example of the growing impact of AI on the corporate world. The company has already cut over 500 roles this financial year, and as AI continues to evolve, it seems likely that more cuts will follow. Still, the company is optimistic, and investors are responding positively, with shares rallying 11.1% after the news broke.
It’s also a cautionary tale about the pace at which AI is transforming industries. In a world where AI is increasingly taking over tasks once done by humans, it’s clear that the future of work is changing fast – but will workers adapt quickly enough?
