Sydney: Australian airline Qantas has announced plans to cut around 850 jobs over the coming years as part of a multi-year partnership with global consulting and technology firm Accenture. The agreement will see some corporate functions outsourced, with a significant portion of the work expected to be handled by Accenture teams based in India.
The first changes are expected to take effect by mid-2027. The proposed reductions will affect approximately 3% of Qantas’ 28,000-strong Australian workforce. The airline said the restructuring is aimed at modernising its technology systems, simplifying business operations and expanding the use of artificial intelligence (AI).
Finance, procurement and HR teams among those affected
The initial phase of the restructuring will focus on corporate departments, including finance, procurement, human resources and marketing.
Under the agreement, some services currently handled by Qantas employees will move to Accenture. These functions will largely be delivered by teams in India, while some work will continue to be performed in Australia.
Qantas said around 850 roles would be affected over the coming years. However, the airline has not yet determined the individual positions that will be removed or how the changes will affect each employee.
The company said it would consult affected employees and their unions over the coming months. It also plans to redeploy as many employees as possible to other positions within the group, alongside reskilling and retraining support.
Qantas cites technology and AI transformation
Qantas Group CEO Vanessa Hudson informed employees about the changes through an internal communication, describing the announcement as difficult news for some members of the workforce.
Hudson said the airline needed to modernise the technology and systems supporting its operations to keep pace with rapid developments in the aviation and technology sectors.
According to the airline, its operations rely on more than 1,000 legacy applications developed over several decades. These systems were not originally designed to work together, creating complexity across different business functions.
The partnership with Accenture is expected to help simplify these systems, improve data integration and accelerate the adoption of AI.
Hudson said the airline needed access to specialised data and AI skills at a pace that would be difficult to achieve through recruitment alone. The partnership is intended to provide the technical expertise and resources required to redesign corporate processes and improve operational efficiency.
Union raises concerns over offshoring
The announcement has drawn criticism from the Australian Services Union (ASU), which represents workers in several areas of the airline’s corporate operations.
The union questioned the decision to move work overseas, saying Qantas had previously indicated that the Accenture partnership would not involve offshoring Australian jobs.
ASU Assistant National Secretary Scott Cowen said workers deserved an explanation about the change. The union also argued that employees should not bear the cost of technological transformation.
Qantas, however, disputed the claim that it had given assurances that no jobs would be moved offshore. The airline said it had discussed the possibility of work being transferred to Accenture teams in India and Australia with the union in recent months.
The union is expected to engage with affected employees as consultations begin.
A wider shift among Australian companies
Qantas is among several major Australian companies that have announced plans to restructure corporate operations, reduce costs or move certain functions overseas.
Companies including Woolworths, Officeworks, Telstra and National Australia Bank have also announced similar changes this year.
The developments reflect the growing use of technology, automation and AI in corporate operations. Businesses are increasingly reviewing how administrative and support functions are managed, with some shifting work to external service providers.
For Qantas, the Accenture agreement forms part of a broader effort to modernise its systems while continuing to invest in its airline operations and customer services.
The first changes are expected by mid-2027, with further adjustments planned over the following years. The final impact on individual employees will become clearer after consultations with staff and unions.