Australia’s national airline, Qantas, announced on Tuesday that it will cut 850 corporate jobs at home and move most of the work to India. The major restructuring is part of a multi-year deal with consulting firm Accenture to modernise back-end operations and step up artificial intelligence investment.

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The decision directly impacts roughly three per cent of the carrier’s 28,000-strong Australian workforce, out of its 32,000 global staff. Affected roles span finance, procurement, human resources, and marketing, with the first phase of transfers expected to begin by mid-2027. 

Upgrading decades of old technology

Qantas currently spends over AU$1 billion annually on technology. However, its operations rely on more than 1,000 legacy software applications built for an earlier era that cannot seamlessly connect.

In a message to employees on Tuesday, Chief Executive Vanessa Hudson expressed regret over the uncertainty facing staff. She explained that the sheer speed of technological change made the overhaul necessary. Hudson noted that the airline could not hire skilled data and AI specialists fast enough on its own, making the partnership with Accenture essential to eliminate duplicate work and free up staff for high-value tasks. Over time, these transferred functions will be further automated using AI, though Qantas indicated affected employees will be offered redeployment where possible.

Australian unions object as layoffs spread

The move has drawn sharp criticism from the Australian Services Union. Union leader Scott Cowen accused Qantas of breaking prior promises made earlier this year that no jobs would be sent offshore. He argued that long-serving employees should not bear the burden of technological upgrades, adding that transferring roles overseas goes against the national spirit.

The announcement comes during a difficult economic period in Australia, marked by rising living costs and five-year high unemployment. Qantas is the third major Australian brand to trim corporate staff within a month, following similar moves by National Australia Bank and design firm Canva, bringing total corporate job cuts in the country to over 4,500. Other prominent firms, including Telstra and Woolworths, have also offshored roles this year.

Meanwhile, Qantas is navigating financial pressures of its own. Although jet fuel costs have surged due to Middle East conflicts—prompting recent fare hikes and flight reductions—strong passenger demand has helped cushion the financial impact.