AI Takes Over: How WiseTech's Massive Layoffs Signal the End of Manual Coding

Australian logistics software giant WiseTech Global has announced plans to cut approximately 2,000 jobs, representing half of its workforce, as it integrates artificial intelligence across its operations. The layoffs will impact product development and customer service teams, including those at its US subsidiary, e2open, and are scheduled to begin in the second half of FY26, extending into FY27.

CEO Zubin Appoo made a bold declaration: "The era of manually writing code as the core act of engineering is over." He emphasized that AI enhances productivity by leveraging WiseTech's expertise in logistics, rich datasets, and network advantages built over 30 years. The company, known for its CargoWise supply chain management platform used by over 22,000 companies globally, will not redeploy affected employees.

However, Sanchit Vir Gogia, chief analyst at Greyhound Research, cautions that this move is more about strategic positioning than pure engineering efficiency. "AI becomes the justification layer for a cost structure reset," he noted, highlighting a shift from AI as augmentation to AI as a workforce strategy.

Vendors Restructuring Alongside Their Customers

WiseTech is part of a broader trend. In 2025, AI was cited as the primary driver for nearly 55,000 US layoffs. Companies like Salesforce and Microsoft have also reduced workforces, with Microsoft reporting that AI tools now write up to 30% of its code. This wave of AI-related reductions is now affecting software vendors that enterprises rely on.

A New Risk for Enterprise Customers

For CIOs using CargoWise, the layoffs raise concerns about continuity, especially since 11 of WiseTech's largest customers have less than 20% of expected users live on the platform. Gogia warns that the highest risk period is six to eighteen months post-layoffs, when experienced engineers depart and AI systems are still maturing. He advises CIOs to seek named human accountability and contractual SLAs that guarantee timely human escalation.

WiseTech has also shifted its commercial model, moving 95% of CargoWise customers to a transaction-based pricing model (CargoWise Value Packs) away from per-seat licensing. Appoo explained, "For SaaS businesses that monetise on seats or users, AI will disrupt them." This transition aims to align pricing with value delivered through automation but introduces cost volatility for buyers due to seasonal volume spikes and other factors.

Gogia concludes, "This is not a WiseTech-specific phenomenon. It is a structural SaaS rebase triggered by AI economics."