Qantas to shed 850 staff, shift back-end work to India

Qantas announced on Tuesday that it will eliminate 850 domestic positions and transfer a portion of its operational workload to India. The airline entered a multi-year contract with the professional services firm Accenture to modernize its back-end systems, processes, and data infrastructure.

Chief Executive Officer Vanessa Hudson stated the partnership aims to increase investment in technology and artificial intelligence. Under the agreement, specific services will be managed by Accenture’s large India-based team. Hudson said the airline will consult with affected staff and unions before finalizing decisions, with the initial changes set to take effect by mid-next year.

Hudson acknowledged the impact on employees, noting that the shift reflects the rapid evolution of the industry rather than a lack of commitment. "The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations," she said. "We know this will be difficult news for some of our people and this decision is not a reflection of their contribution or commitment."

This restructuring follows a string of major workforce reductions in Australia. National Australia Bank and design firm Canva both announced significant cuts earlier this month. Between these three companies, approximately 4,550 corporate jobs have been targeted for elimination, relocation, or restructuring in the last four weeks. NAB is cutting 2,500 roles, while Canva is removing 1,200.

Labor unions are expected to respond strongly, given their history of disputes with Qantas over outsourcing. The timing coincides with high living costs and a five-year peak in the unemployment rate. A slow economy, exacerbated by elevated oil prices resulting from the Iran conflict, is pushing companies to reduce expenses.

Qantas has faced rising jet fuel costs, though these have been partially offset by new customers. The airline reported late last week that demand remained resilient. Many travelers switched to Qantas after canceling flights with carriers that have Middle East stopovers. The company said it will continue adjusting fares and capacity to manage fuel expenses.