Qantas to cut 850 Australian jobs and shift some work to India
Australian airline Qantas plans to eliminate 850 local jobs and move some services to India under a multi-year deal with consulting firm Accenture. It is the third major corporate layoff plan announced in Australia within three weeks.
Qantas, the Australian airline, said on Tuesday that it plans to cut 850 jobs in Australia and move some work offshore as it restructures operations around greater use of artificial intelligence. It is the third large corporate layoff plan announced in Australia in the past three weeks, pointing to mounting pressure on the country's workforce.
The airline said it had signed a multi-year agreement with the professional services firm Accenture. The deal is aimed at modernising Qantas's back-end systems, processes and data while it increases investment in technology and AI. Some services will be transferred to Accenture's large team based in India.
Qantas chief executive Vanessa Hudson said the company would consult affected staff and unions before final decisions are made, with the first changes taking effect by the middle of next year. She said the scale and speed of change in this area was unprecedented and unlike anything businesses have seen in generations. Hudson also acknowledged the news would be difficult for some employees and said the decision was not a reflection of their contribution or commitment.
The changes are expected to prompt a strong reaction from unions, which have previously clashed with Qantas over controversial outsourcing decisions.
A difficult moment for workers
The restructuring comes as living costs in Australia are climbing and the unemployment rate has reached its highest level in almost five years. A subdued economy, aggravated by elevated oil prices linked to the Iran conflict, is also pushing companies to cut costs.
In the past month, about 4,550 corporate jobs at just three companies have been targeted for cuts, relocation or restructuring: 2,500 roles at National Australia Bank (NAB), 1,200 at the design company Canva, and now 850 at Qantas.
Qantas has been dealing with rising jet fuel prices, though the costs have been partly offset by ticket sales to new customers who switched to the airline after cancelling flights with carriers that have Middle East stopovers. In a market update late last week, Qantas said customer demand was proving resilient but that it would keep adjusting fares and capacity in response to fuel costs.
