Qantas will cut 850 jobs in Australia and outsource some corporate functions to Accenture, with teams mostly based in India. The airline cited AI-driven changes, drawing criticism from a union over offshoring plans.Qantas plans 850 job cuts as Accenture takes over some corporate functions (AI-generated image) Australian flag carrier Qantas Airways has announced plans to cut 850 jobs in the country and outsource some corporate functions to consulting firm Accenture as it looks to adapt to the growing use of artificial intelligence (AI) and streamline its operations.The job cuts will affect around 3 per cent of Qantas' Australian workforce of 28,000 employees.

The first phase will involve staff across finance, procurement, human resources and marketing, with some roles being transferred to Accenture and handled by teams that will be mostly based in India.Qantas chief executive Vanessa Hudson informed employees through an email that the reductions would take place over the coming years, with the first round expected by mid-2027, as reported by Reuters.Acknowledging the uncertainty surrounding the announcement, Hudson apologised to employees who would be affected by the changes. QANTAS CITES AI PUSH FOR WORKFORCE RESTRUCTURINGQantas said the decision comes amid rapid technological changes in the aviation industry, particularly the growing adoption of AI.

The airline's partnership with Accenture is expected to help it overhaul legacy systems, access specialised technology skills and simplify parts of its corporate operations.Hudson said the partnership would allow Qantas to access data and AI expertise that companies across industries are competing to acquire, adding that the airline could not recruit employees at the pace required for the transformation. "Through a partner we can access the data and AI skills that every industry in the world is competing for, because we cannot hire at the pace this work needs," Hudson said, reported by Reuters.The airline expects the arrangement to help reduce duplication and redesign the way some of its corporate functions operate.AUSTRALIAN WORKERS' UNION QUESTIONS QANTAS' OUTSOURCING DECISIONThe announcement has drawn criticism from the Australian Services Union (ASU), which said Qantas had previously assured employees that the Accenture partnership would not involve offshoring jobs.ASU Assistant National Secretary Scott Cowen said the airline had directly told the union earlier this year that there were no plans to move jobs overseas. However, the latest announcement indicated that hundreds of employees would see their work transferred to teams largely based outside Australia."Qantas staff have the right to an explanation," Cowen said in a statement.He also argued that employees who had helped run the airline for years should not bear the cost of technological transformation.While acknowledging AI's growing impact on workers across the country, the union said companies should not place the burden of technology-driven changes on their existing workforce.MORE AUSTRALIAN COMPANIES TURN TO OFFSHORINGQantas is the latest major Australian company to announce plans to move some work overseas as businesses look to reduce operating costs and improve efficiency.Retailers Woolworths and Officeworks, telecommunications company Telstra, and National Australia Bank have also announced similar outsourcing or offshoring initiatives this year.The developments reflect a wider shift in how companies are restructuring their workforces amid rising cost pressures, technological advancements and the increasing adoption of AI.(With Reuters inputs)- Ends