Qantas sets 850 job cuts in Accenture-led AI modernisation

By Sophie Lindqvist

Qantas expects 850 roles across its group to be affected by an Accenture-led outsourcing and artificial intelligence (AI) programme, with job cuts beginning in 2027 and some by mid-2027.

Many of the outsourced roles will sit in India, where Accenture teams will provide most services under a strategic partnership with the Irish technology consultancy. Accenture will modernise Qantas’ back-end systems, the underlying software and data processes, and change how the airline processes data. The announcement gives no breakdown of eliminations, transfers or other changes within the 850 roles.

What does the Accenture partnership change for Qantas?

Qantas says its operation runs on more than 1,000 legacy applications, meaning older software systems never designed to work together. Accenture’s remit therefore extends across a fragmented technology estate rather than one isolated application. The practical change is the location and structure of Qantas’ technology work: more of it will sit with an external supplier in India.

The programme could reduce friction between systems that currently do not connect cleanly. Qantas expects the AI investment to deliver lasting positive effects, but its announcement provides no measured savings, service improvements or implementation result. Nor does it give a separate software-delivery timetable; the dated milestones concern the workforce from 2027.

Qantas already spends A$1 billion on technology each year. That investment has led to the construction of its Product Innovation Centre in Adelaide, which already employs thousands of workers using AI and is to add 400 more roles.

The plan therefore places 850 affected Qantas Group roles alongside 400 additional positions in Adelaide. Qantas has not specified the functions or timing of those 400 positions.

CEO Vanessa Hudson said:

“The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations. Leading organisations around the world are well progressed in using technology and AI to completely transform how they work, and standing still is not an option for us.”

Hudson’s statement frames the outsourcing decision as a response to competitive technology change. It does not supply the operational measures needed to test what the programme delivers: recurring technology cost, expected savings, implementation spending and service performance all remain unspecified.

The cost and capacity context

Qantas has raised international fares and increased fuel surcharges on long-haul tickets as fuel costs rise. Its fuel-cost forecast has moved from $2.5 billion to a range of $3.1 billion to $3.3 billion. Flight cuts are occurring at the same time, so Qantas faces lower capacity alongside higher prices on some services.

The announcement does not quantify the flight reductions or identify affected routes. The timing places technology investment against network cost pressure, although no direct link is given between Accenture’s work and fuel expenses. The modernisation could improve internal data handling, but remains a promised outcome rather than a documented gain. Qantas’ A$1 billion annual technology commitment should not yet be treated as offsetting the higher fuel bill.

Qantas also says it has undertaken one of the biggest fleet renewals since its creation. The fleet change has occurred alongside apparent growth in its Australian workforce, which stands at 28,000 and has gained 4,400 new operational roles since 2023.

The 850 affected roles therefore sit within a larger employment expansion. The announcement does not show how they overlap with the 4,400 positions created since 2023.

The next verifiable checkpoints are Accenture’s back-end work, the first job reductions in 2027 and the planned 400 roles at the Adelaide centre. Their sequencing will show whether Qantas can convert a broad technology reset into measurable operating benefits as it absorbs the higher fuel bill.