WiseTech Global reports 36% fall in 1H profit, slashes 2,000 jobs
Make us a preferred source
Make us a preferred source on Google
The news: Logistics software group WiseTech Global reported a 36% decline in first-half statutory profit to USD68.1 million ($96.5 million), and announced plans to reduce headcount by 2,000 roles by FY27.
The numbers: The statutory result was ahead of consensus estimates of $92.3 million, according to Visible Alpha data. On an underlying basis, net profit after tax rose 2% year on year to USD114.5 million.
Total revenue surged 76% year on year to USD672 million, boosted by a five-month contribution from US-based supply chain platform provider e2open.
The group declared an interim dividend of 6.8 US cents per share, up from 6.7 US cents last year.
The context: WiseTech said the next phase of its efficiency program will “likely” result in a reduction of around 2,000 roles in the second half of FY26 and FY27.
The cuts will initially impact the company’s customer service and product and development teams, with headcount in those units expects to be reduced by up to 50%.
What they said: “These reductions will focus on roles where we have seen AI dramatically improve throughput,” said WiseTech CEO Zubin Appoo said on an analyst call.
“We recognise this will be difficult for our people. We’re communicating these planned changes to our team following announcement to the market, in line with our disclosure obligations.
“This decision was not taken lightly, but it is necessary to ensure we remain disciplined, nimble, competitive and future ready. A transformation of this scale will fundamentally reshape our cost base whilst allowing for an uplift in productivity, while the impact is not expected to be material to FY26 outcomes with execution costs likely offsetting any savings.”
The source: ASX
