Tuesday 04 / August / 2026
Sydney: Australian flag carrier Qantas is considering outsourcing up to 1,000 corporate roles to India as part of a broader cost-cutting and artificial intelligence (AI) transformation programme, prompting concerns from unions over potential job losses.
According to the Australian Financial Review, the initiative—known internally as Project iQ—is being developed in partnership discussions with consulting firm Accenture and could see parts of Qantas' marketing, finance, human resources and other back-office operations shifted offshore.
Qantas confirmed it is in early-stage discussions with Accenture but stressed that no final agreement has been reached.
"Like all organisations, Qantas has been looking at ways to accelerate the use of technology and AI to help us modernise the way we work and deliver better outcomes for our customers and our people," a Qantas spokesperson said.
"We have been exploring partnerships that have the capability to support us and are in early-stage discussions with Accenture, but no formal agreement is in place and no decisions have been made."
The proposed restructuring forms part of the airline's wider strategy to expand the use of AI and automation to improve efficiency, reduce costs and modernise business operations. The project is being led by Chief Technology, AI and Transformation Officer Rachel Yangoyan, with oversight from Chief Executive Vanessa Hudson and other senior executives.
The proposal has drawn criticism from the Australian Services Union (ASU), which represents many of the airline's corporate employees.
ASU Assistant National Secretary Scott Cowen said the union was concerned about the potential impact on Australian workers and urged Qantas to honour its commitments to maintaining local jobs.
"Qantas has informed that there is no plan to offshore any Australian jobs, and we demand the airline stay true to these commitments," Cowen said.
"The premium service Qantas passengers expect is built on the expertise of our members, not the efficiency of an algorithm."
The union warned that replacing experienced Australian employees with offshore operations and AI-driven systems could weaken service quality and erode valuable institutional knowledge.
Qantas, however, said its adoption of AI is not aimed solely at reducing headcount. The airline noted that it has added thousands of operational jobs in Australia in recent years, including pilots and engineers, and expects to continue hiring in key operational areas.
Chief Executive Vanessa Hudson has previously said AI offers significant opportunities across aviation, from improving aircraft maintenance and customer service to enhancing operational performance.
"I don't think it's the right thing to only think about the value that AI can give is only through headcount reduction," Hudson said in an earlier statement.
The potential outsourcing initiative reflects a broader trend among major Australian companies exploring offshore operations. Retailer Woolworths Group has examined moving some corporate functions overseas, while Officeworks has announced plans to shift certain customer service roles to India and the Philippines. Telstra has also partnered with Accenture to accelerate its digital transformation and AI capabilities.
A final decision on Project iQ, including the number of jobs that could be affected, is expected later this year. Qantas said it remains committed to supporting Australian employment while leveraging technology to improve productivity and customer outcomes.
