Qantas to cut 850 Australian jobs and outsource work to India under AI-driven overhaul

Background

Qantas has announced a multi-year partnership with Accenture to upgrade its background systems, data, and processes, heavily relying on new technology and AI. This makes it the third major Australian company to announce massive corporate layoffs within three weeks, following similar restructuring moves by Canva and National Australia Bank.

Details

The initial wave of cuts will eliminate 850 local jobs, primarily targeting finance, procurement, human resources, and marketing departments. Some of these operational tasks will be shifted to Accenture's large workforce based in India. Qantas chief executive Vanessa Hudson stated that the airline will consult with unions and affected employees, with the first transition expected by the middle of next year.

Impact

This decision has sparked immediate pushback from labor unions, who pointed out that Qantas previously promised not to offshore more jobs. The cuts land during a tough economic climate for Australians, characterized by a nearly five-year high in the unemployment rate and soaring living costs. Across Qantas, Canva, and National Australia Bank, 4,550 corporate roles have faced cuts or restructuring over the past month alone.