Qantas to slash 850 jobs and outsource them to India
What's the story
Australian airline Qantas has announced plans to cut 850 local jobs as part of an AI-driven overhaul. The move comes as part of a larger trend of corporate layoffs in Australia, with Canva and National Australia Bank also announcing restructuring plans. The airline has signed a multi-year deal with professional services firm Accenture to modernize its backend systems and processes using technology and AI. As part of the deal, some services will be transferred to Accenture's large team in India.
Outsourcing details
Changes are expected to take effect by mid-2027
Qantas CEO Vanessa Hudson said the airline would consult with affected staff and unions before final decisions are made.
The first changes are expected to take effect by mid-2027.
Hudson acknowledged that this news would be difficult for some employees, but stressed that it does not reflect their contribution or commitment to the company.
Union response
Unions likely to respond strongly against layoffs
The changes are likely to draw strong responses from unions, which have previously clashed with Qantas over controversial outsourcing decisions.
The restructuring comes at a time when Australian workers are already facing high living costs and an unemployment rate not seen in nearly five years.
A subdued economy, worsened by high oil prices due to the Iran conflict, is also forcing companies to cut costs.
Cost management
Qantas offsets rising fuel costs through ticket sales
Despite rising jet fuel prices, Qantas has managed to offset some costs through ticket sales to new customers who switched from airlines with Middle East stopovers.
In a recent market update, the airline said customer demand remained strong, but it would continue to adjust fares and capacity in response to fuel costs.
This comes as part of its broader strategy amid the ongoing economic challenges and restructuring efforts.