Qantas job cuts 850 amid AI transition, union accuses airline of masking cost-cutting

Australian Airlines (Qantas) has announced a reduction of 850 positions as part of a partnership with Accenture to advance its AI transformation, which also includes outsourcing some corporate functions overseas. This move has drawn sharp criticism from unions, who allege the airline is using AI as a pretext to justify job cuts. Union leaders argue that the layoffs are not due to AI replacing workers, but rather a shift toward hiring lower-paid overseas staff. Melissa Donnelly, Secretary-General of the Australian Council of Trade Unions, stated that companies should be transparent and engage in genuine consultation regarding decisions affecting employees. The union representing affected Qantas staff specifically accused the airline of using AI as a cover for reducing local employment. This situation mirrors recent actions by other tech firms like WiseTech and Atlassian, which have also conducted layoffs citing AI. Furthermore, Australian Telecom is reducing roles within its AI joint venture with Accenture and shifting some operations to India. The Australian central bank recently noted that while AI has not caused mass unemployment, the job market shows signs of preliminary adjustments, with reduced hiring demand in AI-affected roles. Australian Prime Minister Anthony Albanese addressed the issue when questioned about the Qantas cuts, acknowledging that AI presents both significant opportunities and major economic challenges.