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

Australian airline Qantas plans to eliminate 850 local jobs and transfer work to India as part of an AI-driven transformation, according to a recent announcement. The airline has signed a multi-year deal with professional services firm Accenture to modernize its systems and processes. Qantas CEO Vanessa Hudson stated that this decision reflects the unprecedented scale and speed of change in the industry, and assured that staff and unions would be consulted before the implementation of the changes, expected to begin in mid-2023.

The restructuring comes amid challenging economic conditions for Australian workers, with rising living costs and the highest unemployment rate in nearly five years, exacerbated by the Iran conflict and elevated oil prices. Since March, three major Australian companies - National Australia Bank, Canva, and Qantas - have collectively announced plans to cut around 4,550 jobs, relocate workers, or restructure operations.

Despite the challenges, Qantas noted that ticket sales from new customers, who abandoned airlines with Middle East stopovers, have helped offset fuel costs.