Qantas to cut 850 jobs as it rushes to keep pace with AI

SYDNEY: Australian airline Qantas said Tuesday (Nov 10) it will cut 850 jobs as it shifts some corporate functions to India and accelerates the use of artificial intelligence.

The nation's largest airline said it had inked a deal with consulting firm Accenture to overhaul "back-end systems", with an unspecified number of roles to be taken over by "teams in India".

In an email to staff, Qantas chief executive Vanessa Hudson said the jobs would be cut "over the coming years", with the first round to happen by mid-2027.

"I know this is hard news for some, and I'm sorry for the uncertainty it brings," Hudson said. The job cuts affect around 3 per cent of Qantas' Australian workforce of 28,000.

The first phase of the cuts would affect finance, procurement, human resources and marketing staff. 

The airline, Australia's flag carrier, said the move was in response to rapid changes in the industry due to AI, and the partnership would help it overhaul its legacy systems and simplify some corporate functions.

"Through a partner we can access the data and AI skills that every industry in the world is competing for, because we cannot hire at the pace this work needs," Hudson said.

"Leading organisations around the world are well progressed in using technology and AI to completely transform how they work, and standing still is not an option for us," Hudson said.

Qantas, meanwhile, said it was about to embark on the "largest fleet renewal in its history".

Qantas Group added 17 new aircraft during the past financial year, and expected up to 31 more to arrive in the year ahead, according to financial results earlier this year.

That investment would allow Qantas to start retiring its double-decker A380 fleet from 2028.