WiseTech Global cuts 2,000 jobs in AI-driven restructuring, sparking labour tensions

ASX-listed logistics software firm WiseTech Global has commenced redundancies affecting approximately 2,000 of its 7,000 employees across 40 countries. The company, which announced the cuts in late February, cited artificial intelligence advancements as the primary driver for the restructuring, describing the initiative as an "AI transformation". The redundancy process began in South Korea and Mexico, with the company stating that notifications for staff in Australia are scheduled to start next week.

The rollout has drawn attention due to discrepancies in internal communications. While global emails to staff referenced an "AI transformation" and noted that "AI has fundamentally changed how work gets done", internal messages sent to employees in China were altered to use the term "global transformation". This omission of the specific term "AI" in the Chinese communications followed a recent court ruling in that jurisdiction, which compensated a tech worker sacked for replacement by artificial intelligence.

WiseTech CEO Zubin Appoo addressed questions regarding the variation in messaging in internal Teams chats, stating that differences were due to "legal and regulatory requirements" in various jurisdictions. A company spokesperson maintained that the language of internal communications has no bearing on the firm’s obligations to employees, asserting that these duties remain constant regardless of geography. However, staff in internal chats questioned the necessity of the alteration, noting that other communications had clearly demonstrated the layoffs were AI-related.

Morale within the organisation has deteriorated significantly during the three-month waiting period for individual notifications. Employees reported that the prolonged uncertainty has led to anxiety shifting into sadness, with many deferring major life decisions such as home purchases or starting families. One Sydney-based employee described the erosion of pride in the workplace, while a colleague in Germany criticised the lack of clear guidance from leadership, stating that operations have effectively halted due to the absence of a visible vision for the future.

The turmoil has catalysed a rapid increase in union activity. Professionals Australia presented a petition signed by nearly 600 employees to Appoo last week, demanding fair redundancy packages, transparency, and genuine consultation. Paul Inglis, a director at the union, noted that membership among the technical workforce had surged by over 30 per cent in just eight weeks. Inglis described the situation as "AI disruption on the ground", emphasising that workers feel unprotected and are seeking accountability as the company reshapes its workforce.