Qantas will cut more than 850 jobs over the next few years as part of a major overhaul of corporate operations, with some work due to be outsourced to India.
The decision was confirmed in Qantas Group’s announcement that the company had struck a deal with technology consulting firm Accenture.
It said the changes are in response to the ‘pace of change in technology and AI globally’, which is transforming what customers expect and how people do their jobs.
‘We know this [the job losses] will be difficult news for some of our people and this decision is not a reflection of their contribution or commitment,’ Qantas chief executive Vanessa Hudson said on Tuesday.
‘We need to reinvent the processes, platforms and data behind our business so we can innovate faster and deliver a better, more connected experience for our customers and our people.
‘That means fundamentally redesigning how the work behind our airline gets done, so it is simpler, more connected and keeps getting better, with automation and AI built in from the start.’
The first wave of changes is expected to be in place by mid-2027.
The process is due to affect staff working in finance, procurement, human resources and marketing.
Qantas will cut more than 850 jobs over the next few years as part of a major corporate overhaul that includes outsourcing work to India. Pictured, a Qantas plane at Sydney Airport
Qantas will begin the consultation process with employees and their union over the coming months, and said individual outcomes ‘have not been determined’.
‘We will look to redeploy as many people as possible, with retraining, reskilling and opportunities elsewhere across the group, including through the creation of new roles here in Australia,’ Ms Hudson said in an email to staff, seen by The Australian.
While union consultations are ongoing, the workers’ representative, the Australian Services Union (ASU), has previously said they had asked for confirmation the company would not outsource jobs outside the country.
‘Qantas has informed us that there is no plan to offshore any Australian jobs, and we demand the airline stay true to these commitments,’ ASU Assistant National Secretary Scott Cowen said earlier this year.
‘If that commitment from Qantas turns out to be worthless, it won’t just be a broken promise to the ASU.
‘It will be a deep breach of trust with the Australian public who have stuck by this airline through everything it has put them through.’
The multi-year partnership with Accenture forms part of Qantas Group’s annual $1billion investment in technology.
Its ‘Innovation Centre’ in Adelaide is forecast to grow to more than 400 roles, and thousands of employees are already using AI tools in their daily work, the airline said.
Qantas chief executive Vanessa Hudson (pictured) outlined the changes in an email to company staff on Tuesday
The group has opened 4,400 new operational roles since 2023 and expects to hire additional staff across its operational divisions.
Qantas said last week that it would be reducing its domestic flights and increasing fares while high fuel prices continue to impact the aviation industry.
‘[We] will continue to adjust fares and capacity in response to higher fuel costs,’ it said in a market update last week.
The airline has projected the final six months of 2026 will see it spend a total of $3.75billion on fuel, up from an earlier forecast of $3.6billion.
The Qantas Group achieved an Underlying Profit Before Tax of $2.06billion and a Statutory Profit After Tax of $1.29billion for the year ending June 30, 2026.
ITs announcement about job cuts comes a day after Boeing revealed plans to cut five per cent of its commercial aircraft workforce.
The roles will be cut through a combination of layoffs and ‘attrition’ due to a slower transition to give factories and supply chain partners more time to ‘achieve stability’, according to commercial chief Stephanie Pope.
‘Adjusting our production schedules and reducing aircraft output puts us in an overstaffed position,’ she said on Monday.
