Qantas to cut 850 Australian jobs and move some work to India

Which departments will be affected

Qantas has announced an agreement with professional services firm Accenture. Some of the airline’s functions will move to a large Accenture team in India. The first cuts will affect employees in finance, procurement, human resources and marketing.

Qantas CEO Vanessa Hudson said the company would consult with affected employees and unions before making final decisions. She said the pace and scale of technological change were unprecedented for a business across several generations, and that the decision would be difficult news for some employees. Hudson also stressed that the cuts were not related to their contributions at work or their commitment to the company.

According to its latest annual report, Qantas employs about 32,000 people.

Unions demand answers

Unions reacted sharply to the airline’s plans. They have previously clashed with Qantas over decisions to outsource work. The Australian Services Union demanded an explanation for why the company was changing course after previously promising not to move jobs overseas.

Scott Cowen, the union’s assistant national secretary, said AI was having a major impact on workers across the country, but that the people who had supported the airline for years should not have to pay the price for technological change. He also criticized the transfer of new jobs overseas.

Job cuts amid economic pressure

Qantas’s restructuring comes as the cost of living and unemployment rise, with unemployment reaching its highest level in almost five years. A weak economy and high oil prices driven by the conflict with Iran are also prompting companies to cut costs.

Over the past month, three companies have announced job cuts, the relocation of jobs or restructuring: National Australia Bank plans to affect 2,500 positions, Canva 1,200 and Qantas 850. Together, that amounts to about 4,550 corporate jobs.

The airline is also facing rising jet fuel prices. Some of the costs have been offset by passengers who chose Qantas after airlines with connections in the Middle East cancelled flights. In a market update published late last week, Qantas said customer demand remained resilient, but that it would continue to adjust fares and capacity in response to fuel costs.

Dataist’s take: The agreement links system modernization and investment in AI to local job cuts and the transfer of some work to India. Qantas has not yet made final decisions: the company says it will first discuss the changes with employees and unions.