Qantas Airlines to Eliminate 850 Headquarters Positions, Outsourcing Work to India
India will play a significant role in the outsourcing strategy of Australian airline Qantas, which plans to transfer approximately 850 head-office jobs to Accenture under a multi-year agreement. Most of the services will be delivered by Accenture’s teams based in India, according to reports from various Australian media outlets, including the Australia Broadcasting Company. The transition will encompass several business functions, including finance, procurement, human resources, and marketing, with the first phase expected to be implemented by mid-2027.
Qantas is undertaking this move as part of its initiative to modernize its technology infrastructure and streamline operations amid the growing influence of artificial intelligence in the travel sector. The airline aims to update its systems, which have become challenging to integrate and manage. Qantas CEO Vanessa Hudson noted that the company currently operates over 1,000 legacy applications that were not designed to work together. She emphasized that modernizing these systems and connecting the data across them is essential for accelerating innovation and enhancing the airline’s use of AI.
Hudson acknowledged the potential uncertainty this announcement could create among employees, stating, “I know this is hard news for some, and I’m sorry for the uncertainty it brings.” She explained that the changes are intended to improve efficiency and allow continued investment in customers and employees. However, the decision has faced criticism from the Australian Services Union (ASU), which has raised concerns about the implications of moving jobs from Qantas’ Australian headquarters to overseas teams. ASU NSW Secretary Angus McFarland expressed that this shift is detrimental to Australian workers and questioned the benefits of offshoring jobs at the national airline.
The union has also claimed that this announcement contradicts previous assurances given to employees regarding job security. ASU Assistant National Secretary Scott Cowen pointed out that workers were informed in August that there were no plans to offshore jobs. He stated, “Earlier this year, Qantas told us directly there was no plan to offshore any jobs.” The union is now seeking clarity on the number of positions affected, which roles will remain in Australia, and what retraining assistance will be provided. They have also called for redundancy packages that consider employees’ years of service.
Hudson mentioned that the individual outcomes for affected employees have not yet been determined. Qantas plans to consult with workers and their union in the coming months. The airline intends to retain as many employees as possible by offering opportunities for redeployment, retraining, and reskilling as the outsourcing transition unfolds.
