Qantas to Cut 850 Jobs in AI-Driven Accenture Deal

Australian carrier Qantas Airways will cut 850 jobs under a new multi-year partnership with consulting firm Accenture, citing rapid industry change driven by artificial intelligence, Reuters reported on Tuesday (Nov 10).

Chief executive Vanessa Hudson announced the cuts in an email to all staff, according to Reuters and the Australian Broadcasting Corporation (ABC). The job losses represent about 3% of the airline’s Australian workforce of 28,000, Reuters said. No financial terms were disclosed.

Which roles are affected

The first phase covers corporate functions including finance, procurement and marketing, both outlets reported, with Reuters also listing human resources. The work will be carried out by Accenture teams mostly in India, with some in Australia, according to ABC.

The cuts will take place over the coming years, with the first changes expected by mid-2027, Reuters and ABC reported.

Qantas said the partnership will help it redesign and simplify its corporate functions and reduce duplication, according to Reuters.

AI and legacy systems

Hudson said the airline runs on decades-old technology, with more than 1,000 legacy applications that were never designed to work together, ABC reported. She said the deal would “accelerate our use of AI, with lasting benefits”.

“Standing still is not an option for us,” Hudson said in the email, Reuters reported. She also acknowledged the news would be hard for some employees and apologised for the uncertainty it caused.

ABC said Qantas will redeploy as many affected staff as possible. The Australian Services Union was meeting its Qantas members on the day of the announcement, ABC reported, but no position from the union was given.

Wider offshoring trend

Qantas joins other large Australian companies that have announced similar offshoring moves this year, Reuters said, naming supermarket group Woolworths, office supplies retailer Officeworks, telecommunications company Telstra and National Australia Bank.

What’s next

The first changes under the Accenture partnership are due by mid-2027, with further phases to follow over the coming years. ABC reported no government reaction to the announcement.

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