Qantas to axe 850 jobs in offshoring deal with Accenture

Qantas, Australia's national carrier, announced plans to eliminate 850 jobs in the country and outsource certain corporate functions to consulting giant Accenture. This move comes as the airline aims to adapt to the growing influence of artificial intelligence in its industry. In an email to employees, Qantas CEO Vanessa Hudson disclosed that the job reductions would occur "over the coming years," with the first round set to begin by mid-2027.

Hudson expressed regret for the uncertainty this news brings to the affected staff. The job cuts represent approximately 3% of Qantas' Australian workforce of 28,000. Initially, the cuts will impact finance, procurement, human resources, and marketing personnel. Some roles will be transferred to Accenture, with teams largely based in India.

This strategic shift follows the airline's recognition of the rapid industry changes driven by AI and the need to overhaul its legacy systems and streamline corporate functions. By partnering with Accenture, Qantas can tap into the necessary data and AI expertise, as local hiring cannot keep pace with the demands of the evolving work environment.

The Australian Services Union criticized Qantas for previously assuring staff that no job offshoring plans were in place under the Accenture deal. The union's Assistant National Secretary, Scott Cowen, emphasized that Qantas staff have the right to an explanation. While AI is reshaping the workforce across the nation, the costs associated with technological advancements should not be shouldered by the workers who have maintained the airline's operations for years.