Qantas will cut 850 Australian corporate roles and shift finance, procurement, human resources and marketing work to Accenture teams in India under an AI-driven modernisation plan announced on Tuesday. The airline says the overhaul is needed to replace more than 1,000 legacy applications that were never designed to work together.
Scope and Structure of the Overhaul
The multi-year partnership with Accenture, internally dubbed Project iQ, targets back-office functions first. Qantas employs about 32,000 people, according to its most recent annual report, and the initial wave of changes is expected to take effect by mid-2027. Chief executive Vanessa Hudson told staff the decision is not a reflection of their contribution or commitment and said the airline would focus on redeployment, reskilling and retraining where possible.
Hudson said the airline runs on technology built up over decades for a different era. “Like every airline, we run on technology built up over decades for a different era, including more than 1,000 legacy applications that were never designed to work together,” she wrote in an email to staff seen by HCAMag. The partnership is intended to unlock innovation faster and accelerate the use of AI, with those functions eventually further transformed through automation.
Union Backlash and Prior Assurances
The Australian Services Union criticised the move, noting Qantas had assured it earlier this year that there were no plans to offshore Australian jobs. “Earlier this year, Qantas told us directly there was no plan to offshore any jobs,” assistant national secretary Scott Cowen said, according to ACS. “Today, they’ve come out and told hundreds of staff members that their work will now be delivered mostly from people overseas.”
Cowen said the union’s priority was keeping as many roles onshore as possible and that the cost of technology change should not be borne by workers who kept the airline running. The ASU met with its Qantas members on Tuesday to discuss the announcement. The Transport Workers Union national secretary Michael Kaine linked the announcement to the airline’s earlier illegal outsourcing of ground crew.
Investor Reaction and Market Context
Investors reacted positively. Qantas shares rose about 4 per cent in morning trade following the announcement, according to HCAMag and The Guardian. The restructuring comes amid a broader wave of corporate job cuts in Australia, with National Australia Bank flagging 2,500 roles and Canva 1,200 in the past month, totalling roughly 4,550 positions across the three companies.
The airline has been grappling with rising jet fuel prices linked to the Iran conflict, though costs have been partially offset by ticket sales from customers who switched after cancelling flights at carriers with Middle East stopovers. Qantas said in a market update last week that customer demand was proving resilient.
Timeline and Next Steps
Qantas said it would consult with affected staff and unions before final decisions are made. The first changes are expected by midway through next year, with the full transition playing out over the coming years under the Accenture agreement.
Sources
- Qantas
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Photo: Mitchul Hope (CC BY-SA 2.0)
