Qantas said on Tuesday it would cut 850 jobs in Australia and outsource some corporate functions to consulting firm Accenture as it adapts to the increased use of artificial intelligence in the airline industry.
In an email to staff, Qantas chief executive Vanessa Hudson said the jobs would be cut "over the coming years", with the first round to happen by mid-2027.
"I know this is hard news for some, and I'm sorry for the uncertainty it brings," Hudson said. The job cuts affect around 3% of Qantas' Australian workforce of 28,000.
The first phase of the cuts would affect finance, procurement, human resources and marketing staff. Some roles would be shifted to Accenture and performed by teams that would be "mostly" based in India.
The airline, Australia's flag carrier, said the move was in response to rapid changes in the industry due to AI, and the partnership would help it overhaul its legacy systems and simplify some corporate functions.
"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," Hudson said.
{{/usCountry}}"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," Hudson said.
{{/usCountry}}Qantas is the latest in a growing number of big Australian companies to offshore workers in a bid to cut costs and improve efficiency. Woolworths, Officeworks, Telstra and National Australia Bank have announced similar moves this year.
The Australian Services Union said in a statement that Qantas had previously assured staff there was no plan to offshore jobs under the Accenture deal.
"Earlier this year, Qantas told us directly there was no plan to offshore any jobs. Today, they've come out and told hundreds of staff members that their work will now be delivered mostly from people overseas," ASU Assistant National Secretary Scott Cowen said.
"Qantas staff have the right to an explanation."
“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.”