Australian carrier Qantas Airways has announced plans to eliminate approximately 850 positions and outsource a broad range of back-office functions to consulting giant Accenture, with most of the affected roles expected to move to India, according to reports. The restructuring is set to begin from mid-2027 and marks one of the most significant operational overhauls the airline has undertaken in recent years.

What the Restructuring Covers

The initial phase of cuts will affect employees working in finance, procurement, human resources, and marketing. Under a multi-year agreement signed with Accenture, Qantas will modernise its back-end systems, business processes, and data infrastructure as part of a broader technology transformation programme. While most roles are expected to transfer to Accenture-operated teams in India, some functions will remain in Australia.

What the CEO Said

Qantas Chief Executive Officer Vanessa Hudson addressed the development directly in a message to employees, acknowledging the airline currently spends more than A$1 billion annually on technology while still relying on over 1,000 legacy applications built across several decades. 'These systems were not designed to work together and have become increasingly complex to maintain,' Hudson said, according to reports. In a separate internal email, she added: 'This is hard news for some, and I'm sorry for the uncertainty it brings.'

Hudson also noted that the pace of technological change and AI adoption was unprecedented, and that Qantas needed to adapt to remain competitive in a rapidly shifting industry landscape.

Automation and AI at the Core

The functions handed over to Accenture are expected to undergo progressive transformation through automation and artificial intelligence, with the stated aim of reducing duplication and improving efficiency across corporate operations. This signals that the workforce impact could extend beyond the initial 850 roles as AI integration deepens over time.

Notably, Qantas said it would consult with staff and unions before implementing the changes and would seek to redeploy affected employees where possible — a standard procedural commitment that unions are likely to scrutinise closely in the months ahead.

Broader Industry Trend

The announcement comes as aerospace and aviation firms globally accelerate efficiency-driven restructuring. Boeing said on Monday it would cut approximately 5% of its commercial airplane workforce through layoffs and attrition, citing the need to give factories and suppliers more time to stabilise output after slowing plans to raise jet production. Together, the moves reflect a wider pattern of aviation-sector consolidation, offshoring, and AI-led cost reduction that has gathered pace through 2026.

What Happens Next

Implementation is not expected to begin before mid-2027, giving the airline time to complete union consultations and explore redeployment options. How Accenture's India-based teams will be structured, and which specific business processes they will absorb first, has not yet been detailed publicly. Investors and labour bodies in Australia will be watching the consultation process closely as the timeline becomes clearer.