Qantas will cut 850 local jobs, with the first phase affecting staff in finance, procurement, human resources and marketing. Some services in those areas will move to Accenture, delivered mostly by its teams in India and some in Australia, as the airline modernises its back-end systems and seeks to cut costs.
The first phase of the changes is expected to be completed by the middle of next year, Qantas CEO Vanessa Hudson said. The cuts build on earlier reductions at the airline’s head office in Mascot, Sydney.
The deal with professional services firm Accenture is intended to “modernise its back-end systems, processes and data”, with Hudson citing the need to modernise the airline’s more than 1000 back-office systems and reduce duplication. Plans for offshoring under an internal program known as Project iQ were first reported in August.
“I know this is hard news for some, and I’m sorry for the uncertainty it brings,” Hudson said. She said the changes “are about modernising the technology behind our business and becoming more efficient, so we can keep investing in our customers, our people and our future.”
Hudson said consultations with affected employees and their union would take place over the next few months, with individual outcomes yet to be determined.
The airline faces pressure from high fuel costs, which have been triggered by the Middle East conflict. Hudson cited the impact of AI and said Qantas and Accenture could access data and AI skills through their partnership, adding that the airline “cannot hire at the pace this work needs”.
Accenture has more than 84,000 staff in India, according to LinkedIn. Under the deal, some services in the affected areas will move to Accenture, delivered mostly by its teams in India and some in Australia.
The Australian Services Union, which represents the affected workers, had previously sought assurances that Qantas had no plan to offshore the roles. In August, ASU Assistant National Secretary Scott Cowen said the airline had told the union there was no plan to offshore Australian jobs. “If that commitment from Qantas turns out to be worthless, it won’t just be a broken promise to the ASU. It will be a deep breach of trust with the Australian public who have stuck by this airline through everything it has put them through,” Cowen said at the time.
Analysis
Why This Matters
- The job cuts represent a significant hit to white-collar employment in Australia at a major national carrier.
- The deal signals a broader trend of AI-driven automation and offshoring in corporate back-office functions.
- The dispute with the Australian Services Union raises questions about the reliability of Qantas's earlier commitments to keep jobs onshore.
Background
Qantas has been cutting costs under pressure from high fuel prices and technological change. The airline last week announced capacity reductions. The offshoring plan, dubbed Project iQ, was first reported in August. The Australian Services Union at the time said Qantas had given assurances that no Australian jobs would be moved offshore. The airline's head office in Mascot has already seen earlier rounds of job cuts.
Key Perspectives
Qantas CEO Vanessa Hudson: says the changes are about modernising the airline's technology and becoming more efficient, and that partnering with Accenture is necessary because Qantas "cannot hire at the pace this work needs."
Australian Services Union Assistant National Secretary Scott Cowen: said in August that if the commitment not to offshore jobs turned out to be worthless, it would be a "deep breach of trust with the Australian public."
What to Watch
- The outcome of consultations between Qantas and the union over the next few months.
- Whether other Australian companies follow Qantas in outsourcing office roles to India amid the AI shift.
- The impact on Qantas's operational costs and customer service as the outsourcing takes effect.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedQantas will cut 850 Australian jobs in an outsourcing deal with Accenture.Sydney Morning Herald - Latest News: “Qantas will cut 850 local jobs after inking a deal with professional services firm Accenture”
- SupportedSome services in finance, procurement, HR and marketing will move mostly to India.Sydney Morning Herald - Latest News: “The first phase will start with finance, procurement, people and marketing, with some of the services in these areas moving to Accenture, delivered mostly by its teams in India and some in Australia”
- SupportedThe deal is part of a plan to modernise Qantas’s systems and cut costs.Sydney Morning Herald - Latest News: “as the airline seeks to cut costs and increase efficiency”
- SupportedThe first phase of the job cuts and outsourcing is expected to be completed by the middle of next year.Sydney Morning Herald - Latest News: “those changes expected to be completed by the middle of next year”
- SupportedThe deal is intended to “modernise its back-end systems, processes and data”.Sydney Morning Herald - Latest News: “to “modernise its back-end systems, processes and data””
- SupportedHudson said, “I know this is hard news for some, and I’m sorry for the uncertainty it brings.”Sydney Morning Herald - Latest News: ““I know this is hard news for some, and I’m sorry for the uncertainty it brings,” said CEO Vanessa Hudson.”
- SupportedHudson said the changes “are about modernising the technology behind our business and becoming more efficient, so we can keep investing in our customers, our people and our future.”Sydney Morning Herald - Latest News: “She said the changes “are about modernising the technology behind our business and becoming more efficient, so we can keep investing in our customers, our people and our future”.”
- SupportedHudson said consultations with affected employees and their union would take place over the next few months, with individual outcomes not yet determined.Sydney Morning Herald - Latest News: ““Individual outcomes have not been determined and we will now work through consultation with affected employees and their union over the next few months,” Hudson said.”
- SupportedPlans for offshoring under Project iQ were first reported in August.Sydney Morning Herald - Latest News: “Plans for the offshoring, under a program known internally as Project iQ, were first reported on in August .”
- SupportedHigh fuel costs have been triggered by the Middle East conflict.Sydney Morning Herald - Latest News: “Surging fuel prices - triggered by the Middle East conflict - have heaped pressure across the aviation industry.”
- Partly supportedHudson said the airline “cannot hire at the pace this work needs”.Sydney Morning Herald - Latest News: “because we cannot hire at the pace this work needs.”
- SupportedAccenture has more than 84,000 staff in India, according to LinkedIn.Sydney Morning Herald - Latest News: “Accenture has more than 84,000 staff in India, according to LinkedIn.”