Qantas Airways has announced a restructuring plan involving the elimination of 850 positions. The airline intends to collaborate with the consulting firm Accenture to implement artificial intelligence technologies and outsource specific corporate functions to overseas locations.
The decision has drawn criticism from labor unions, which argue that the company is using the integration of AI as a pretext to reduce costs by replacing local staff with lower-paid international employees. The Australian Services Union, representing the affected staff, has publicly questioned the transparency of these workforce reduction measures.
Qantas stated that it will continue negotiations with unions to assist affected employees with potential redeployment and support. The company has not provided a direct response to allegations regarding the use of AI as a justification for downsizing.
This trend extends beyond the airline industry, as other Australian companies have also been reducing local headcount while expanding operations in India, Vietnam, and the Philippines. Similar workforce reductions citing AI adoption have been reported this year at companies including WiseTech and Atlassian.
The Reserve Bank of Australia recently noted early signs of labor market adjustments related to AI. While large-scale unemployment has not yet occurred, hiring demand for roles significantly impacted by AI technologies has shown signs of weakening, according to the central bank's analysis.
