Chief Executive Vanessa Hudson described the technological shift as “unprecedented and unlike anything businesses have seen in generations.” She acknowledged the “uncertainty” the announcement brings to staff, stating, “I know this is hard news for some, and I’m sorry for the uncertainty it brings.” Hudson emphasized that the decision is not a reflection of employee contribution or commitment, but rather a necessary response to the speed of change in the aviation industry. The airline believes partnering with an external specialist will provide access to AI and data capabilities that would be difficult to build internally at the required pace.
The initial phase of the restructuring will target staff in finance, procurement, human resources, and marketing. While Qantas has not specified the exact number of roles moving offshore, it confirmed that some services will be handled by Accenture’s large India-based team. Hudson indicated that the airline will consult with affected staff and unions before final decisions are made, with the first changes expected to take effect by midway through next year, circa mid-2027.
The announcement has drawn sharp criticism from labor representatives. Scott Cowen, assistant national secretary of the Australian Services Union, stated that Qantas needed to explain itself after previously promising no plans to move jobs offshore. “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,” Cowen said. He added, “Sending more jobs overseas is not in the spirit of Australia.”
Qantas’ move is the third significant corporate layoff plan announced in Australia in just three weeks, following restructuring moves by design platform Canva and National Australia Bank (NAB). In total, these three companies have announced the reduction of approximately 4,550 corporate roles, with NAB cutting 2,500 jobs and Canva eliminating 1,200. This wave of downsizing occurs against a backdrop of surging living costs and an unemployment rate that has reached its highest level in nearly five years. Analysts note that a subdued economy, compounded by elevated oil prices stemming from the Iran conflict, is further pressuring companies to reduce operational costs.
Qantas has not disclosed the specific financial savings expected from the restructuring. The company will continue its consultation process with unions in the coming months, with the first operational changes scheduled to be implemented by the middle of 2027.
