Qantas to cut 850 Australian jobs and outsource most roles to India

Qantas announced it will outsource 850 local corporate jobs, mainly to India, as part of a plan to modernize its IT systems, BBC reported. The airline's CEO, Vanessa Hudson, described the move as a response to rapid technological and AI changes.

The job cuts are expected to begin in mid-2027, with affected roles primarily in finance, procurement, people, and marketing functions, according to the BBC. Some roles will remain in Australia, but most will shift to teams in India.

Hudson emphasized that the airline's technology infrastructure relies on over 1,000 legacy applications that were not designed to integrate, necessitating a redesign and simplification of corporate functions. Qantas spends over AU$1 billion annually on technology.

The changes come amid broader workforce disruptions in Australia, with similar large-scale layoffs recently announced by other companies, The Guardian noted. Qantas has entered a multi-year deal with consulting firm Accenture to support the overhaul.

CEO Hudson acknowledged the difficulty of the news and said the company is engaging with unions and staff on the planned changes. The airline also recently flagged fare increases and flight reductions due to rising fuel costs, per the BBC.

This development reflects a growing trend of AI-driven restructuring in Australian businesses, with Qantas positioning itself to become more efficient through technology modernization, according to both BBC and The Guardian reports.