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Qantas chief executive Vanessa Hudson outlined the changes in an internal email, stating that the airline will work with Accenture to simplify more than 1,000 back office systems and reduce duplication across corporate functions. The initial focus will cover finance, procurement, human resources and marketing, with services delivered primarily by Accenture teams based in India although some positions will remain in Australia. Hudson expressed regret for the uncertainty the announcement would cause while stressing that standing still was not an option for the carrier. Individual outcomes for staff have yet to be decided and consultations with employees and unions will continue over the coming months, according to the communication.
The Australian Services Union, which represents many of the affected workers, had sought guarantees in August that no local jobs would be sent offshore, a commitment the union said Qantas had provided at the time. ASU Assistant National Secretary Scott Cowen called for the airline to honour those earlier assurances as consultations proceed. Transport Workers Union national secretary Michael Kaine criticised the decision, likening it to previous cost-cutting measures under former chief executive Alan Joyce that drew widespread condemnation.
This latest outsourcing initiative builds on Qantas’ ongoing investment of more than $1 billion annually in technology and its accelerating use of automation and AI across operations ranging from customer service to planning systems. The airline expects to redeploy as many impacted employees as possible through retraining and new roles, Hudson said, noting that more than 4,400 operational positions have been added since 2023 with thousands more anticipated in Australia. Market observers pointed to similar moves by other Australian firms including NAB and Woolworths that have also shifted corporate functions overseas.
Qantas has faced significant legal and reputational challenges from past outsourcing efforts. A Reuters report detailed how the airline was ordered to pay A$170,000 to three test case workers unlawfully sacked in 2020 as part of a broader ground handling outsourcing that ultimately cost more than A$120 million in compensation. The Federal Court found the original terminations were designed to prevent industrial action, though it determined the jobs would have been outsourced lawfully a year later.
The move occurs as Qantas recorded a net profit of A$1.3 billion for the latest financial year, down almost 20 percent from the prior period amid rising fuel costs and other pressures, according to company filings. Shares in the airline rose more than 3 percent in trading following the announcement, reflecting investor approval of the cost-saving measures. Hudson described the Accenture partnership as enabling faster innovation and better experiences for customers and employees.
Critics have raised concerns about the potential loss of institutional knowledge and managerial oversight in key areas. A fund manager interviewed by The Sydney Morning Herald warned that outsourcing central functions could risk quality and delivery if expertise is diminished. The Australian Services Union has emphasised that replacing skilled roles with AI could harm the airline’s operational capacity over time.
