Qantas cuts 850 jobs in Australia and moves work to India under AI overhaul: Take a look at the roles facing changes

Qantas is set to cut 850 jobs in Australia and move some of the work to India as the airline steps up its use of AI and technology. The Australian carrier has signed a multi-year agreement with professional services firm Accenture to modernise its back-end systems, processes and data, as it steps up investment in technology and AI. Some of the services will be handled by Accenture’s large India-based team, The Guardian reported on Tuesday.

The cuts will initially affect workers in finance, procurement, human resources and marketing. Qantas said it would consult affected employees and unions before making final decisions. The first changes are expected to take effect by midway through next year.

Qantas chief executive Vanessa Hudson said the airline was facing a level of technological change that businesses had not seen in generations.

“The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations,” Hudson said.

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

Qantas has about 32,000 employees, according to its most recent annual report.

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Unions oppose outsourcing move

The decision has drawn a strong response from Australian unions. They have previously challenged Qantas over its outsourcing plans.

The Australian Services Union said Qantas needed to explain the decision after earlier promising it had no plans to move any jobs offshore.

“AI is having a huge impact on workers across the country, but the cost of technology change should not be borne by the workers who have kept the airline running for years,” assistant national secretary Scott Cowen said.

“Sending more jobs overseas is not in the spirit of Australia.”

Qantas is the latest Australian company cutting jobs

The Qantas cuts come as several large Australian companies restructure their workforce.

The airline is the third major company in Australia in three weeks to announce a large job-cut or restructuring plan. Canva recently announced plans to cut or relocate more than 1,200 jobs, while National Australia Bank flagged a restructuring involving 2,500 roles.

Across Qantas, Canva and NAB, about 4,550 corporate jobs have been targeted for cuts, relocations or restructuring in the past month.

The changes come at a difficult time for Australian workers. Living costs are rising and the unemployment rate has reached its highest level in nearly five years.

A subdued economy, along with higher oil prices linked to the Iran conflict, is also pushing companies to cut costs.

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Why Qantas is restructuring

Qantas has been dealing with higher jet fuel prices, although the impact has been partly offset by ticket sales to new customers who switched to the airline after cancelling flights with airlines that had Middle East stopovers.

Qantas said in a market update late last week that customer demand remained resilient. However, it will continue to adjust fares and capacity in response to fuel costs.

The latest move shows how the push to use AI and technology is affecting jobs beyond traditional technology roles, with workers in finance, HR, procurement and marketing also facing changes.