Qantas Airways, the Australian flag carrier, has announced plans to cut 850 jobs across its domestic operations and outsource several corporate functions to Dublin-based consulting giant Accenture, as the airline aims to leverage the growing use of artificial intelligence (AI) to enhance operational efficiency.
In an email to employees on Tuesday, Qantas CEO Vanessa Hudson said the job reductions would take place over the coming years, with the first phase expected to be completed by mid-2027. The proposed cuts represent approximately 3% of the airline’s 28,000-strong Australian workforce.
The initial round of redundancies will primarily affect employees working across finance, procurement, human resources and marketing.
“Under the proposed arrangement, some existing responsibilities will be transferred to Accenture, with the consulting firm’s teams delivering most of the outsourced work from India,” the email said further.
Acknowledging the uncertainty surrounding the announcement, Hudson apologised to employees affected by the restructuring.
She further said the airline needed access to specialised data and AI capabilities to keep pace with the rapid technological changes reshaping the aviation industry.
“Through a partner we can access the data and AI skills that every industry in the world is competing for, because we cannot hire at the pace this work needs,” the CEO noted.
The partnership with Accenture is also expected to help Qantas modernise its legacy technology systems, streamline administrative processes and simplify corporate operations.
The Australian flag carrier sees the move as part of a broader effort to respond to changing industry requirements while improving productivity.
Qantas is among several major Australian companies increasingly turning to overseas operations to manage costs and improve business efficiency.
Ventures like Woolworths, Officeworks, Telstra and National Australia Bank have announced similar outsourcing initiatives in 2026, highlighting the growing pressure on businesses to restructure their workforces amid technological change.
However, the airline’s announcement has drawn criticism from the Australian Services Union (ASU), which questioned the decision to move certain responsibilities overseas.
While reminding the airline about its previous “indication” of the Accenture partnership would not involve offshoring jobs, ASU Assistant National Secretary Scott Cowen said that employees deserved a clear explanation of the change in direction and should not bear the financial consequences of technological transformation.
The union also raised concerns about the impact of AI adoption on Australian workers, particularly those who have spent years supporting the airline’s operations.
The spokesperson further added that discussions with the union had taken place over recent months regarding the possibility of transferring certain roles to Accenture’s teams in India and Australia.