Qantas to Cut 850 Jobs, Shift Work to India in AI Overhaul

Qantas plans to cut 850 Australian jobs and move some work offshore as part of an AI-driven restructuring, the airline announced Tuesday.

Under a multi-year deal with Accenture, Qantas will modernise its back-end systems, processes and data while stepping up investment in technology and AI. Some services will shift to Accenture's large India-based team.

The initial cuts target finance, procurement, human resources and marketing staff. Qantas employs about 32,000 people, according to its latest annual report. CEO Vanessa Hudson said the airline would consult affected staff and unions before final decisions, with first changes due by midway through next year.

"The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations," Hudson said, adding the decision was "not a reflection of their contribution or commitment."

The Australian Services Union said Qantas needed to explain itself after previously promising no jobs would move offshore. Assistant national secretary Scott Cowen said AI is hitting workers nationwide, but "the cost of technology change should not be borne by the workers who have kept the airline running for years."

It is the third major corporate layoff plan in Australia in three weeks, following Canva and National Australia Bank. About 4,550 corporate roles across the three companies have been targeted for cuts, relocations or restructuring in the past month.

The move comes as living costs surge and unemployment reaches its highest level in nearly five years. Qantas said last week that customer demand remains resilient but it will keep adjusting fares and capacity in response to fuel costs.