Qantas to Outsource 850 Corporate Jobs to Accenture, Most Roles Moving to India

About 850 Australian corporate staff face job losses, with most roles moving offshore to India and possible redeployment for some.
Most of the work is leaving Australia for India
Qantas will outsource 850 corporate roles to Accenture, beginning mid-2027.
Mark

Why does this one stand out? Companies outsource all the time.

Mimi

Because the reasons given are technology and AI, and because most of the work is leaving Australia for India. Hudson said the cuts start mid-2027 in finance, procurement, people and marketing.

Luke

Worth noting the AI link is stated carefully. The company says the work will be transformed with automation and AI "in time." That's a future intention, not a described cause of these 850 cuts.

Mark

What's the justification for the Accenture deal itself?

Mimi

Legacy systems. Hudson cited more than 1,000 applications never designed to work together, and technology spending above AU$1bn a year.

Luke

Those are the CEO's own figures and framing. We don't have an independent look at the systems or any projected savings.

Mark

And the people affected?

Mimi

Qantas says staff will be redeployed where possible, including in new Australian roles. Hudson apologised for the uncertainty.

Luke

"Where possible" is doing a lot of work. No number of redeployments is given, and we don't know what terms apply to those who aren't.

Mark

Any reaction yet?

Mimi

The BBC has asked the Australian Services Union for comment, and Hudson says talks with unions and staff are under way.

Luke

So the union position is simply unknown right now. Same goes for the exact split between India and Australia.

  • An internal email from the chief executive has landed on staff desks, delivering news of 850 job losses with an apology for the uncertainty it brings.
  • Most of the affected corporate roles in finance, procurement, people and marketing are heading to India, leaving Australian workers facing an uncertain future.
  • Qantas is pointing to more than 1,000 legacy applications and over AU$1bn in yearly technology spending as the reason to modernise through a multi-year Accenture deal.
  • Talks with unions and staff are underway, and the Australian Services Union has yet to respond, while redeployment promises remain vague.
  • Cuts are set to begin in mid-2027, and the company is racing to show that AI and redeployment can soften the blow.

In the quiet machinery of a long-established airline, a decision has been made that will move the familiar work of 850 Australian office workers across the ocean. Qantas, facing an aging inheritance of more than a thousand disconnected software systems and a technological age it did not design for, has chosen to hand its finance, procurement, people and marketing functions to the consultancy Accenture, with most of that labour settling in India. The changes arrive in mid-2027, and whether they bring renewal or simply relocation will be judged by the people who must now wait, and by those who may be offered a different place within the same company.

On Tuesday, Qantas chief executive Vanessa Hudson wrote to staff to say that 850 corporate jobs in Australia will be outsourced to the consulting firm Accenture, with most of the work moving to India. "This is hard news for some and I'm sorry for the uncertainty it brings," she wrote.

The first changes begin in mid-2027 and touch finance, procurement, people and marketing. Hudson said the work will shift "mostly" to teams in India, with "some in Australia." The move is part of a multi-year agreement with Accenture meant to modernise the airline's IT and make it more efficient.

Hudson's argument centres on technology. Qantas spends more than AU$1bn a year on it, and its back-end systems are running on decades-old foundations, including more than 1,000 legacy applications never built to work together. Under the deal, she said, corporate functions will be simplified and duplication reduced, so staff can focus on work that creates value. AI is part of the story too, with the company saying the outsourced work will be further transformed "in time."

The announcement came days after a market update warning of fare rises and flight cuts due to higher fuel costs. Qantas employs about 28,000 people in Australia, so the 850 roles are a small share of the total but a concentrated cut within corporate functions.

The company says affected staff will be redeployed "where possible," including into new Australian roles, though it has not said how many. Talks with unions and staff are ongoing. The BBC has approached the Australian Services Union for comment, and the details of redeployment before mid-2027 will show how much of this change lands on the people involved.

On Tuesday, Qantas chief executive Vanessa Hudson sent an internal email telling staff that 850 corporate jobs in Australia will be outsourced to the consulting firm Accenture, with most of the work moving to India. "This is hard news for some and I'm sorry for the uncertainty it brings," she wrote.

The changes begin in mid-2027. The first roles affected sit in finance, procurement, people and marketing. Hudson said that work will shift "mostly" to teams in India, with "some in Australia." The move is part of a new multi-year agreement with Accenture, which Qantas describes as a way to modernise its information technology systems and make the airline more efficient.

Hudson's case rests largely on the state of the airline's technology. Qantas spends more than AU$1bn a year (about US$691m or £514m) on technology, she said, and its back-end systems need upgrading. "Like every airline, we run on technology built up over decades for a different era," she wrote, including more than 1,000 legacy applications that were never designed to work together.

Under the deal, she said, Qantas will redesign and simplify parts of how its corporate functions operate and reduce duplication. The aim, in her words, is for staff to spend more time on work that creates value for customers and the business.

AI sits alongside that explanation. The company said that "in time" the work Accenture takes over will be transformed further through automation and AI. Hudson described the scale and speed of change in technology and AI as something "none of us has seen in our lifetime." Qantas also said thousands of its employees already use AI in their daily work.

The announcement follows a market update from the airline only days earlier, which flagged fare increases and flight cuts amid higher fuel costs. Qantas employs about 28,000 people in Australia and another 4,000 globally, so the 850 affected roles represent a small share of the Australian workforce but a concentrated cut within its corporate functions.

The company said affected staff will be redeployed "where possible," including into new roles in Australia. It has not said in the material released how many people that might cover. Hudson said Qantas is in talks with unions and staff about the plans.

The BBC has contacted the Australian Services Union for comment. Its response, along with the detail of how redeployment works before the cuts start in mid-2027, is what to watch next.

This is hard news for some and I'm sorry for the uncertainty it brings.
— Vanessa Hudson, Qantas CEO, in an internal email to staff
We run on technology built up over decades for a different era, including more than 1,000 legacy applications that were never designed to work together.
— Vanessa Hudson, Qantas CEO
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