Qantas to cut 850 jobs as it rushes to keep pace with AI

Australian airline Qantas announced Tuesday that it will cut 850 jobs as it seeks to keep pace with the rapid advancements in artificial intelligence and the modernization of its operations. The nation's largest carrier disclosed that it had signed a deal with consulting firm Accenture to overhaul its back-end systems, with unspecified roles being transferred to teams in India.

Qantas CEO Vanessa Hudson expressed regret over the news, stating that the decision was not a reflection of employees' contributions or commitment. She emphasized that AI was set to fundamentally reshape the airline industry globally, and the scale and speed of change were unprecedented. Hudson added that standing still was not an option for Qantas, as leading organizations worldwide were well advanced in using technology and AI to transform their operations.

The airline revealed that it had added 17 aircraft during the previous financial year and anticipated up to 31 more to arrive in the upcoming year. This investment would enable Qantas to commence retiring its double-decker A380 fleet from 2028. Consequently, the company expects to reduce its workforce by 850 positions, with the first round of layoffs beginning in the middle of 2027.