Qantas cuts 850 jobs as 'AI washing' claims sweep corporate Australia

Qantas said on Tuesday it will shed 850 jobs and outsource some corporate functions offshore as part of an AI-driven overhaul run with consulting firm Accenture. The Australian Services Union, which represents the affected workers, accused the airline of using AI to launder cuts to Australian jobs. Qantas did not respond to the 'AI washing' concerns.

The term describes companies pinning layoffs on AI when the real driver looks like broader cost-cutting, such as moving work offshore. WiseTech and Atlassian have both cut jobs this year and attributed the losses to AI, while Telstra trimmed staff from an AI joint venture with Accenture and offshored some of that work to India. Other Australian firms have slashed domestic headcount while expanding in India, the Philippines and Vietnam without mentioning AI at all.

Unions argue Australian workers are being replaced by cheaper offshore employees rather than by machines. 'Unions are concerned about the risk of companies using AI simply as a cover to cut Australian jobs with no accountability,' said Australian Council of Trade Unions secretary Melissa Donnelly, who demanded transparency and genuine consultation 'from Qantas to the big banks.' Assistant national secretary Scott Cowen said corporate Australia would copy what he called a failed tactic.

Prime Minister Anthony Albanese, asked about the Qantas cuts while unveiling the government's response to a breach of a government website by an OpenAI agent, said AI 'represents an enormous opportunity and a major economic issue.' Greens senator Barbara Pocock said she was worried to see big companies engaging in AI washing, adding that AI is transforming workplaces but 'that's no excuse to let it run rampant.'

University of Sydney Business School professor Uri Gal said there are 'real incentives' to AI-wash, because a company framing cuts as AI transformation looks innovative instead of cost-driven. He noted Qantas is sending corporate functions to Accenture mainly in India and says they will later be transformed through AI and automation. 'If AI is making these jobs redundant, why does the work first need to be transferred to another group of employees?' he asked. The Reserve Bank of Australia said this week AI has not yet caused widespread job losses, though it flagged 'tentative signs of adjustment,' with job ads weakening in AI-exposed occupations.

A Qantas spokesperson said the airline will keep consulting unions and is focused on redeployment opportunities and support for affected staff. Atlassian, WiseTech and Telstra did not immediately respond to requests for comment. The cuts land as recent polls show Labor's approval ratings sliding amid cost-of-living pressure, with the central bank raising interest rates five times this year to their highest level in 18 years and unemployment at 4.7%, a five-year high. A government spokesperson said employers should invest in upskilling workers to adopt AI.