Australia’s national carrier Qantas is considering outsourcing up to 1,000 corporate roles to India as part of a major cost-cutting and artificial intelligence (AI) transformation project, sparking concerns among unions over potential job losses.
As per AFR, the plan, known internally as Project iQ, involves discussions with global consulting giant Accenture and could see parts of Qantas’ marketing, finance, human resources and other back-office functions shifted offshore.
Qantas confirmed it was in early-stage discussions with Accenture but said no final decision had been made.
“Like all organisations, Qantas has been looking at ways to accelerate the use of technology and AI to help us modernise the way we work and deliver better outcomes for our customers and our people,” a Qantas spokesperson said.
“We have been exploring partnerships that have the capability to support us and are in early-stage discussions with Accenture, but no formal agreement is in place and no decisions have been made.”
The potential restructuring comes as Qantas increases its reliance on AI and automation to improve efficiency, reduce costs and modernise operations.
The project is being led by Qantas Chief Technology, AI and Transformation Officer Rachel Yangoyan, with involvement from Chief Executive Vanessa Hudson and senior executives.
The possible offshore move has triggered concern from the Australian Services Union (ASU), which represents many corporate workers.
ASU Assistant National Secretary Scott Cowen said the union was worried about the impact on Australian employees and urged Qantas to honour commitments regarding local jobs.
“Qantas has informed that there is no plan to offshore any Australian jobs, and we demand the airline stay true to these commitments,” Cowen said.
“The premium service Qantas passengers expect is built on the expertise of our members, not the efficiency of an algorithm.”
The union said replacing skilled Australian workers with offshore arrangements and AI-based systems could affect service quality and operational knowledge.
As per reports, Qantas said the use of technology was not solely focused on reducing staff numbers, highlighting its investment in Australian operational roles.
The airline said it had added thousands of jobs in Australia in recent years, including pilots and engineers, and expected to continue hiring across operational areas.
Chief Executive Vanessa Hudson has previously said AI could deliver significant benefits across aviation, including improving aircraft maintenance, customer experience and operational performance.
“I don’t think it’s the right thing to only think about the value that AI can give is only through headcount reduction,” Ms Hudson said previously.
The potential Qantas move follows similar decisions by other major Australian companies exploring offshore operations.
Retail giant Woolworths Group has considered moving some corporate functions overseas, while Officeworks has announced plans to shift some customer service roles to India and the Philippines.
Telstra has also entered a major technology partnership with Accenture aimed at accelerating digital transformation and accessing AI capabilities.
As per reports, a final decision on Project iQ, including the number of roles potentially affected, is expected later this year.
Qantas said it remained committed to supporting Australian employment while using technology to improve productivity and customer outcomes.
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