Australian airline Qantas has announced plans to cut 850 jobs across its Australian operations and move some of these functions to India. The move is part of a significant technological modernization initiative, which includes stepping up investment in artificial intelligence (AI) and other advanced systems.
The airline has entered a multi-year agreement with professional services firm Accenture to overhaul its back-end systems, data processes, and overall technology infrastructure. A portion of the services under this agreement will be handled by Accenture’s India-based team, as reported by The Guardian.
Roles Affected by the Changes
Initially, the job cuts will impact employees in key corporate functions, specifically in:
- Finance
- Procurement
- Human Resources
- Marketing
Qantas stated it would consult with affected employees and unions before finalizing these decisions, with the first changes anticipated to take effect by mid-2027.
Qantas CEO Highlights Unprecedented Technological Shift
Qantas chief executive Vanessa Hudson addressed the changes, noting the rapid pace of technological evolution impacting businesses globally. "The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations," Hudson remarked. She acknowledged the difficulty of the news for some employees, emphasizing that the decision was not a reflection of their individual contributions.
Union Opposition and Broader Economic Context
The decision has ignited strong opposition from Australian unions, who have previously challenged Qantas over outsourcing. The Australian Services Union (ASU) demanded an explanation, citing earlier assurances from Qantas that there were no plans to move jobs offshore.
"AI is having a huge impact on workers across the country, but the cost of technology change should not be borne by the workers who have kept the airline running for years," said Scott Cowen, ASU assistant national secretary, adding that "sending more jobs overseas is not in the spirit of Australia."
The Qantas job cuts come amid a challenging period for Australian workers and the broader economy. Several other major Australian companies, including Canva and National Australia Bank (NAB), have recently announced significant workforce restructures, targeting thousands of corporate roles. Rising living costs, high unemployment rates, and a subdued economy exacerbated by factors like higher oil prices are pushing companies to reduce operational costs.
Why Qantas is Restructuring
Qantas has been navigating higher jet fuel prices, although resilient customer demand has partially offset this impact. The airline indicated it would continue to adjust fares and capacity in response to fuel costs. This latest restructuring demonstrates how the push for AI and technology integration is now affecting a wider range of roles beyond traditional IT departments, impacting corporate functions like finance and HR.