Australia's largest airline cuts 850 positions after partnering with AI-focused tech consultants

Workers are pushing for stronger AI-related protections after Qantas announced it plans to cut 850 jobs following a deal with Accenture.  

Here's what to know

According to AAP News, employees learned of the plans in an email Tuesday. Finance, procurement, human resources, and marketing are the first areas affected by the cuts aimed at eliminating redundancies and streamlining the workflow with artificial intelligence. Some roles will remain in Australia, but Accenture services will mostly be based in India.

"[The changes] are about modernising the technology behind our business and becoming more efficient, so we can keep investing in our customers, our people and our future," Qantas chief executive Vanessa Hudson said, per AAP News.

More background

Angus McFarland, NSW and ACT secretary of the Australian Services Union, raised concerns about the movement of skills overseas that extend beyond Qantas, Australia's flag carrier airline. He expects the airline's Sydney headquarters to face the heaviest job losses.

"This should be chilling to not just those workers but all Australians because no Australian benefits from this," McFarland said, per AAP News. "This is skills offshore at our national airline and if they can get away with it, well, anyone can." 

Hundreds of corporate positions at Woolworths and Coles are also slated to move to India and other parts of Asia. Australian banks NAB and ANZ also reportedly have plans to shrink domestic roles while growing their workforces overseas. 

Beyond shaking up the labor market, AI relies on electricity-powered computing infrastructure, linking its growth to demand on the grid.

While AI can deliver benefits, such as optimizing energy systems and supporting medical research, its electricity and water needs can strain resources and drive up utility bills, and it puts human jobs at risk.

What's being done?

As workplaces adopt AI, unions representing Australian service workers, finance employees, and tradespeople are calling for safeguards covering consultation, training, and worker protections, according to AAP News. 

Scott Cowen, assistant national secretary of the Australian Services Union, noted that regulation may be the best way to protect local employment.

He said employees facing redundancy should receive retraining and help finding other work, citing opportunities offered to affected energy-sector workers during Australia's renewable-energy transition as a model.

"We're really concerned that this Qantas announcement today is just another example of Australia's corporate greed and of putting profits first, then workers second," Cowen said. 

Where can I learn more?

Qantas' plans come as other major companies cut jobs and expand their use of AI. 

• Kroger planned 3,000 corporate job cuts as its new CEO pushed AI.

• Barclays tied 5,000 job cuts to AI, with developers among the targeted workers.

• Comcast said AI cut service contact rates by 20% as sweeping layoffs loomed.

• Netflix workers are angry as layoffs coincided with Ben Affleck's AI deal, worth nearly $600 million.

• Software engineers fired over AI built OpenExecutive to replace CEOs, turning automation toward management.

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