Qantas to Cut 850 Jobs in Accenture Offshoring Deal as AI Reshapes the Airline

Qantas Airways will cut around 850 jobs as part of a deal to offshore technology work to Accenture, the airline said on Tuesday, in the latest sign of how artificial intelligence and automation are reshaping corporate workforces.

The cuts, which will take place in the first round by mid-2027, will affect staff in finance, procurement, human resources and marketing. Most of the affected roles will move to India, where Accenture has a large presence.

Qantas chief executive Vanessa Hudson said the deal would allow the airline to "modernise our technology and focus on what we do best — flying planes and looking after our customers."

What the deal involves

The deal, which was first reported by the Australian Financial Review, will see Accenture take over a range of technology functions currently performed in-house by Qantas. The airline said the move would save it money and allow it to invest in new technology, including AI-powered customer service tools.

Qantas spends more than A$1 billion a year on technology, and has more than 1,000 legacy applications that it is trying to modernise. The airline said the Accenture deal would help it "simplify and modernise" its technology stack.

The 850 job cuts represent around 3% of Qantas's Australian workforce of about 28,000 people. The airline said it would offer voluntary redundancies to affected staff, and would work with unions to manage the transition.

Unions object

Unions have objected to the move, saying it will send Australian jobs offshore and undermine the airline's ability to provide good service. The Australian Services Union said the cuts were "a slap in the face" for workers who had helped the airline through the pandemic.

"Qantas is making record profits, and yet it is cutting jobs and sending them offshore," said ASU national secretary Emeline Gaske. "This is not about modernisation — it is about cutting costs at the expense of Australian workers."

Qantas reported a net profit of A$1.39 billion in the year to June 2026, up from A$1.25 billion the previous year. The airline's shares have risen more than 20% this year, as investors welcomed its recovery from the pandemic.

AI and the future of work

The Qantas deal is the latest in a series of moves by large Australian companies to offshore technology work and cut jobs as they adopt AI and automation. Banks, insurers and retailers have all announced similar moves in recent months.

Analysts say the trend is likely to accelerate as AI tools become more capable and companies look to cut costs. "The AI revolution is going to reshape the workforce in ways we are only beginning to understand," said one analyst. "Qantas is just the latest example."

For Qantas, the deal is also part of a broader push to modernise its operations. The airline is investing in new aircraft, new lounges and new technology, and has said it wants to be "the most modern airline in the Asia-Pacific."

Sources

• Reuters — Qantas to axe 850 jobs in Accenture offshoring deal