Qantas to cut 850 jobs, shift roles to India
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New Delhi, Nov 10 : Australian airline Qantas Airways plans to cut about 850 jobs and outsource a range of back-office functions under a new technology partnership with consulting firm Accenture with most of the affected roles expected to move to India, as per reports.
The restructuring -- which is set to begin from mid-2027 -- will initially affect employees in finance, procurement, human resources and marketing as the carrier seeks to modernise legacy systems and expand the use of artificial intelligence across its operations.
The announcement comes as aerospace manufacturers and airlines increasingly reshape operations to improve efficiency.
Boeing said on Monday it would cut about 5 per cent of its commercial airplane workforce through layoffs and attrition after slowing plans to raise jet production, citing the need to give factories and suppliers more time to stabilise output.
Moreover, Qantas said it had signed a multi-year agreement with Accenture to modernise its back-end systems, business processes and data infrastructure as part of a broader technology transformation programme.
In a message to employees, Chief Executive Officer Vanessa Hudson said the airline spends more than A$1 billion annually on technology but continues to rely on more than 1,000 legacy applications developed over several decades.
"These systems were not designed to work together and have become increasingly complex to maintain," Hudson said, according to reports.
Most of the affected positions are expected to be transferred to Accenture-operated teams in India, while some functions will remain in Australia.
Qantas said it would consult with staff and unions before implementing the changes and would seek to redeploy affected employees where possible.
"This is hard news for some, and I'm sorry for the uncertainty it brings," Hudson said in an internal email to staff.
The airline said the functions taken over by Accenture would gradually undergo further transformation through automation and artificial intelligence, with the aim of reducing duplication and improving efficiency across corporate operations.
Hudson said the pace of technological change and AI adoption was unprecedented and that Qantas needed to adapt to remain competitive.
The restructuring -- which is set to begin from mid-2027 -- will initially affect employees in finance, procurement, human resources and marketing as the carrier seeks to modernise legacy systems and expand the use of artificial intelligence across its operations.
The announcement comes as aerospace manufacturers and airlines increasingly reshape operations to improve efficiency.
Boeing said on Monday it would cut about 5 per cent of its commercial airplane workforce through layoffs and attrition after slowing plans to raise jet production, citing the need to give factories and suppliers more time to stabilise output.
Moreover, Qantas said it had signed a multi-year agreement with Accenture to modernise its back-end systems, business processes and data infrastructure as part of a broader technology transformation programme.
In a message to employees, Chief Executive Officer Vanessa Hudson said the airline spends more than A$1 billion annually on technology but continues to rely on more than 1,000 legacy applications developed over several decades.
"These systems were not designed to work together and have become increasingly complex to maintain," Hudson said, according to reports.
Most of the affected positions are expected to be transferred to Accenture-operated teams in India, while some functions will remain in Australia.
Qantas said it would consult with staff and unions before implementing the changes and would seek to redeploy affected employees where possible.
"This is hard news for some, and I'm sorry for the uncertainty it brings," Hudson said in an internal email to staff.
The airline said the functions taken over by Accenture would gradually undergo further transformation through automation and artificial intelligence, with the aim of reducing duplication and improving efficiency across corporate operations.
Hudson said the pace of technological change and AI adoption was unprecedented and that Qantas needed to adapt to remain competitive.
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Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.