Qantas prepares to cut 850 Australian jobs in AI and outsourcing overhaul

Qantas is preparing to eliminate 850 Australian jobs under a multi-year overhaul of the systems behind its operations. The airline has signed an agreement with Accenture as it increases investment in technology and AI. The restructuring will also move some services offshore, with the first changes expected by the middle of 2027.

New systems, a different delivery team

Qantas said on November 10 that the agreement would modernize its back-end systems, processes and data, according to the Guardian. Those are three connected parts of the work: the underlying technology, the procedures employees follow and the information those procedures rely on. The stated scope covers changes to how work is organized as well as its supporting systems.

Some services will transfer to Accenture’s India-based team. The Guardian account does not give a breakdown of the proposed cuts between automation and offshore service delivery. The 850 positions should therefore not be read as an established count of jobs replaced by AI.

Chief executive Vanessa Hudson framed the decision as a response to rapid technological change. “The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations,” she said. She also acknowledged the consequences for employees facing the restructuring.

We know this will be difficult news for some of our people and this decision is not a reflection of their contribution or commitment.

Vanessa Hudson, Qantas chief executive

Consultation before implementation

The agreement has been signed, but Hudson said affected employees and unions would be consulted before final decisions were made. That leaves the workforce changes subject to consultation, even though Qantas has already committed to the multi-year modernization agreement with Accenture.

Qantas expects the first changes by mid-2027. That timetable describes the start of implementation under the multi-year deal, rather than a deadline for completing the overhaul or all 850 planned job cuts.