Over the next few years, 850 back-office positions will be gradually restructured, with AI and automation required to be integrated from the initial stages of process design. Qantas is relying on a multi-year partnership with Accenture to modernize its back-office operations. According to reports from Asian Aviation, ACS Information Age, and other media outlets, Qantas announced on November 10 that it has signed a multi-year strategic partnership with Accenture to restructure its back-end systems, processes, and data, and to accelerate the group-wide application of AI. Approximately 850 positions will be affected over the next few years. The first phase of adjustments will focus on finance, procurement, human resources, and marketing functions, and is expected to be implemented by mid-2027.
In a statement, Qantas explained its reasoning in detail. It stated that, like every airline, Qantas relies on technology built over decades for different eras, including more than 1,000 legacy applications that were never designed to work together. Modernizing these systems and connecting the data between them is a crucial step in reducing complexity, unlocking innovation, and accelerating the application of AI, the statement said. According to Firstpost, Qantas believes that by leveraging external technology partners, it can gain access to AI and data expertise that would be difficult to build internally at the required speed. CEO Vanessa Hudson was also very direct in her statement. She said that leading organizations in all industries are already using technology and AI to reshape the way they work, and standing still is not an option for Qantas. The airline needs to fundamentally redesign the way it works, making processes simpler and more interconnected, and embedding automation and AI from the outset.
What will happen after the partnership is implemented? According to Information Age and PS News, most of Qantas's back-office functions will be transferred to Accenture, primarily handled by its team in India, with some work remaining in Australia. These functions will also be further automated and transformed using AI. PS News stated more directly that approximately 850 jobs will be outsourced or transitioned to be performed by AI in the coming years. In a letter to employees, Hudson said that the changes will be implemented over several years, and the company will consult with affected employees and unions before finalizing individual outcomes. It will also strive to redeploy positions within the group, including in newly created positions in Australia, and provide skills enhancement, retraining, and ongoing support. She also acknowledged that this is difficult news for some employees, and that this decision is not a reflection of their contributions and dedication.
The announcement has sparked a significant reaction from Australian unions. According to Information Age, rumors of this collaboration, codenamed Project iQ, had been circulating since the beginning of the year. In August, the Australian Services Union (ASU) stated that Qantas had assured them that there were no plans to outsource Australian jobs. Scott Cowen, ASU Assistant National Secretary, raised sharp questions. He said that Qantas had directly informed them earlier this year that there were no plans to outsource any jobs, but now they are telling hundreds of employees that their work will primarily be handled by overseas teams, and employees are entitled to an explanation. He believes that the costs of technological change should not be borne by employees who have long supported the airline's operations, and that sending more jobs overseas is not in line with the Australian spirit. The union is scheduled to meet with its members on November 10, with the primary goal of keeping as many of these jobs in Australia as possible and ensuring that each affected employee has a real choice regarding their future.
According to Asian Aviation, Qantas invests over $1 billion annually in technology. The Qantas Product Innovation Centre in Adelaide will be expanded to accommodate over 400 employees, and thousands of employees are already using AI tools in their daily work. This collaboration is seen as a step towards consolidating the company's scattered AI initiatives into a group-level platform. The context is also changing. According to Firstpost, this is the third major layoff plan in Australia in the past three weeks, with Canva and the National Australia Bank having previously announced restructurings. Furthermore, according to Information Age, just a few days ago, Qantas disclosed that it was assessing the impact of a potential data breach. Cost reduction, system restructuring, and AI acceleration are all happening in the same week, and the impact of this round of adjustments on employment and technological direction in the Australian civil aviation industry warrants continued monitoring.