Qantas axes 850 Australian jobs, hands back-office work to Accenture's India teams

Qantas said on Tuesday it has signed a multi-year agreement with professional services giant Accenture to rebuild its back-end systems, processes and data as the airline ramps up spending on technology and AI. Some of that work will shift to Accenture's large India-based operation. The overhaul takes out 850 Australian jobs, with the first changes expected to land by midway through next year.

Chief executive Vanessa Hudson said the airline will consult affected staff and unions before anything is finalised. "The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations," she said, adding that the call "is not a reflection of their contribution or commitment."

Qantas is the third Australian heavyweight to swing the axe in three weeks. National Australia Bank has targeted 2,500 roles, design platform Canva 1,200, and Qantas 850 — roughly 4,550 corporate jobs marked for cuts, relocation or restructuring in a single month.

The airline can expect a fight. Unions have clashed with Qantas over outsourcing before, and the timing lands badly: living costs are surging, unemployment sits at its highest level in nearly five years, and a subdued economy is being squeezed further by elevated oil prices tied to the Iran conflict.

Jet fuel costs are the other pressure point. Qantas has partly offset the rise with ticket sales to travellers who dumped carriers with Middle East stopovers and switched to the airline. In a market update late last week, it said demand was holding up but that it would keep adjusting fares and capacity in response to fuel prices.