Qantas Links AI to 850 Job Cuts as Work Moves Overseas, Sparking 'AI Washing' Accusations

Australian airline Qantas plans a restructuring affecting approximately 850 roles over the coming years, with some corporate services to be outsourced to Accenture, a global professional services firm, whose teams are primarily based in India.

The overhaul aims to modernise the airline's operations, with artificial intelligence and automation expected to play a greater role over time. However, the Australian Services Union has accused Qantas of 'AI washing', questioning whether the changes reflect technological advances or conventional cost-cutting.

Qantas Faces Backlash Over AI-Linked Job Cuts

The decision has intensified concerns about Australian companies using technological transformation to justify moving jobs to lower-cost countries. 'AI washing' refers to a practice in which companies attribute workforce reductions to artificial intelligence, even when broader cost-cutting measures, such as offshoring jobs, may be contributing factors. Australia's unemployment rate stood at 4.7% in September, its highest level in the post-COVID era, according to the Australian Bureau of Statistics.

The Australian Services Union accused Qantas of 'using AI to launder their cuts to Australian jobs.' Assistant National Secretary Scott Cowen warned that similar decisions could spread across corporate Australia. 'We expect to see more of this cost cutting and race to the bottom if corporate Australia continues to copy this failed tactic,' he said.

Meanwhile, a Qantas spokesperson said the airline would continue consulting with unions, adding that it was focused on exploring redeployment opportunities and supporting affected employees.

Australian Leaders Call for Greater Transparency Over AI and Job Cuts

Australian Council of Trade Unions Secretary Melissa Donnelly expressed concern about companies using AI to justify workforce reductions without accountability. 'Unions are concerned about the risk of companies using AI simply as a cover to cut Australian jobs with no accountability,' she said. 'From Qantas to the big banks, workers deserve transparency and genuine consultation over decisions that impact their jobs and lives,' she added.

Additionally, Senator Barbara Pocock, a member of the Australian Greens party, also raised concerns on Wednesday, warning that technological change should not excuse questionable corporate practices. 'AI is transforming our workplaces and economy, but that's no excuse to let it run rampant,' she said.

Expert Examines Qantas's AI-Linked Offshore Job Transfers

Uri Gal, a professor at the University of Sydney Business School, said a growing number of companies were blaming job cuts on AI, but warned that 'we should therefore be cautious about accepting AI as the primary explanation.'

He said there were 'real incentives to engage in AI washing,' as companies announcing redundancies as part of an AI transformation could appear 'innovative and forward-looking' rather than simply cutting costs.

Gal pointed to Qantas' plans to transfer some corporate functions to Accenture, primarily in India. 'This raises an obvious question,' he said. 'If AI is making these jobs redundant, why does the work first need to be transferred to another group of employees?'

Government Calls for Worker Training as AI Adoption Expands

The Reserve Bank of Australia said there was little evidence AI had caused widespread job losses, although it identified tentative signs of labour-market adjustment, including weaker job advertising and employment outcomes in occupations more exposed to the technology.

Additionally, a government spokesperson said workers should benefit from new technologies, adding that employers should invest in training to help staff adapt to and use AI.