Qantas to Axe 850 Australian Jobs as AI Push Sends Corporate Work to India and Sparks Union Backlash

India under a new partnership with consulting firm Accenture. Chief executive Vanessa Hudson announced the changes in an email to staff on Tuesday, 10 November. The first changes are expected by mid-2027.

The affected roles represent about 3 per cent of Qantas' Australian workforce of 28,000, according to Reuters. Finance, procurement, people and marketing functions are included in the first phase. Individual employment outcomes have not yet been determined.

'I know this is hard news for some, and I'm sorry for the uncertainty it brings,' Hudson wrote. She said Qantas would seek to redeploy as many affected employees as possible.

Qantas confirmed the partnership on Tuesday, saying Accenture would modernise its back-end systems, processes and data. Services will be delivered mostly by Accenture teams in India, with some work remaining in Australia.

What the Qantas Jobs Deal With Accenture Means

Accenture will take over some services currently handled by Qantas corporate teams. Qantas said automation and artificial intelligence would increasingly reshape those services.

Accenture will invest in modernising Qantas' data platforms. The airline says it has more than 1,000 legacy applications and wants to connect its data and simplify corporate processes.

Hudson said the partnership would give Qantas access to specialist data and AI skills that it could not recruit quickly enough in-house.

Qantas said it would consult affected employees and their union before deciding individual outcomes. It also plans to consider redeployment, retraining and reskilling, including opportunities in new Australian roles. These measures do not guarantee alternative positions for everyone affected.

Unions Hit Back Over Offshoring Promises

The Australian Services Union has criticised the announcement, saying it conflicts with earlier assurances. Assistant national secretary Scott Cowen said the union had been told there was no plan to offshore Australian jobs.

New South Wales and ACT secretary Angus McFarland said most affected roles were expected to be based at Qantas' headquarters in Mascot, Sydney. He described the announcement as 'gut-wrenching' and argued that sending work overseas would also transfer skills away from Australia.

McFarland said there was still time for Qantas to change course, noting that no final decisions had been made about individual roles. Transport Workers' Union national secretary Michael Kaine also criticised the airline, referring to its earlier outsourcing dispute.

Qantas outsourced ground-handling work at 10 airports in 2020. The courts later found that the decision contravened the Fair Work Act, and Qantas lost its appeal to the High Court. In August 2025, the Federal Court ordered an A$90 million (£46.3 million) penalty. Qantas also paid A$120 million (£61.8 million) into a compensation fund for the 1,820 former employees affected.

Other Australian companies have announced offshoring plans. Telstra outlined proposed job reductions involving technology partners in February 2026, while Coles expanded its Accenture partnership in August. Their arrangements differ, but both have added to debate about offshoring and AI.

For Qantas employees, the immediate question is what the restructuring means for their positions. The consultation and individual decisions remain ahead. Qantas says it will pursue redeployment where possible; unions want stronger guarantees and greater transparency.