The Australian carrier signed a multi-year deal with Accenture to overhaul its back-end systems.
Qantas plans to cut 850 Australian corporate jobs and move work offshore through an artificial intelligence overhaul, the carrier announced on Tuesday. It’s the third major corporate layoff plan announced in Australia inside three weeks, The Guardian reported, arriving as the country’s unemployment rate hits its highest level in almost five years.
How the Accenture deal works
Under a new multi-year agreement, consulting firm Accenture will take over back-end systems, processes, and corporate data, BBC News reported. The restructuring starts with roles across finance, procurement, people, and marketing. Most of those jobs will move to Accenture teams based in India, while some will remain in Australia.
Qantas said that over time, the functions transferred to Accenture will be automated further with artificial intelligence. The airline spends over AU$1 billion (US$691 million) annually on technology. In a message sent to staff on Tuesday, Qantas Chief Executive Vanessa Hudson pointed to the strain of older systems, saying, “Like every airline, we run on technology built up over decades for a different era, including more than 1,000 legacy applications that were never designed to work together.”
Hudson explained that the agreement allows the airline to simplify how corporate departments operate, cut down on duplicate work, and let employees focus on tasks that add value to the business and its passengers.
Corporate cuts across Australia
The layoffs at Qantas follow major cutbacks at other large Australian employers. Over the past month, roughly 4,550 corporate roles have been marked for cuts, relocations, or restructuring across three companies. National Australia Bank outlined plans to cut 2,500 roles, while Canva restructured its workforce in a plan affecting 1,200 jobs.
The reductions come as Australian workers face steep cost-of-living increases. A sluggish economy, strained further by higher oil prices caused by conflict involving Iran, has pushed businesses to trim expenses.
Qantas currently employs roughly 28,000 people across Australia and another 4,000 workers abroad. The carrier noted that thousands of its employees already rely on artificial intelligence in their daily responsibilities.
Fuel costs and airline changes
The restructuring comes right after Qantas briefed investors on fuel pressures late last week. In that market update, the airline flagged higher ticket prices and capacity reductions to cope with rising jet fuel expenses. Customer travel demand has remained steady despite those higher fuel costs. Qantas has also offset part of the fuel expense through ticket sales to passengers who chose the carrier after dropping flights that included Middle East stopovers.
Addressing staff on the technology shift, Hudson said, “The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations.” BBC News reported that Hudson’s email phrased the development slightly differently, describing the speed of change in technology and AI as something none of us has seen in our lifetime.
What happens next
Qantas won’t make final moves until it holds consultations with affected staff and unions. The Guardian reported that initial changes will take effect by midway through next year, while BBC News reported the job cuts will begin in mid-2027.
The airline said it will try to place affected employees into other jobs where possible, including new positions based in Australia. Labor unions are preparing to challenge the plan after past clashes with Qantas over outsourcing. BBC News reached out to the Australian Services Union for comment on the cuts.
