Qantas announces outsourcing of 850 corporate roles to Accenture

Qantas has announced a significant restructuring of its workforce, revealing plans to outsource 850 local corporate positions to the consulting firm Accenture. Under the new arrangement, the majority of these roles will be transferred to teams based in India, while a smaller number will remain in Australia. This strategic shift is part of the airline's broader effort to modernize its internal operations and fast-track its investment in artificial intelligence.

In an internal communication sent to employees on Tuesday, CEO Vanessa Hudson acknowledged the difficulty of the news. She stated that the changes would bring uncertainty to some staff members and expressed her apologies for the disruption. Hudson indicated that the transition is designed to help the company keep pace with rapid technological advancements that she described as unprecedented in scale and speed.

The job cuts are scheduled to begin in the middle of 2027. The roles most affected by the initial phase of this plan include positions in finance, procurement, human resources, and marketing. These functions will be handed over to teams in India and, to a lesser extent, to staff within Australia. The airline is currently in discussions with trade unions and affected employees regarding the details of the transition.

This announcement follows closely on the heels of a recent market update from the airline. In that update, Qantas warned of rising ticket prices and a reduction in flight services due to increased fuel costs. The new multi-year agreement with Accenture is framed as a necessary step to make the company's technology infrastructure more efficient and capable of supporting future growth.

Hudson highlighted that Qantas spends over one billion Australian dollars on technology annually, which equates to roughly 691 million US dollars or 514 million British pounds. Despite this substantial expenditure, she noted that the company's back-end systems required a major upgrade. She explained that, like many in the industry, Qantas relies on technology that was developed over several decades for a different era.

The current system includes more than 1,000 legacy applications that were not originally designed to integrate with one another. Through the partnership with Accenture, the airline intends to redesign and simplify these corporate functions. The goal is to reduce duplication in operations, allowing remaining staff to focus on work that generates greater value for customers and the business as a whole.

The company stated that the tasks assumed by Accenture will eventually be further transformed through the use of automation and artificial intelligence. Qantas noted that thousands of its employees already utilize AI tools in their daily routines. The airline employs approximately 28,000 people in Australia and another 4,000 internationally.

Regarding the displaced employees, Qantas said that those affected by the job cuts will be redeployed to other positions where possible. This includes new roles created within Australia. The Australian Services Union has been contacted by the BBC to provide a formal comment on the developments.