Qantas to cut about 850 jobs under Accenture technology deal

The multiyear agreement is intended to modernize Qantas’s systems, processes and data as the airline increases technology and AI investment alongside the largest fleet renewal in its history. Qantas did not disclose the deal’s value. It said the partnership would let it move faster and operate at greater scale than it could alone.

The airline said it has more than 1,000 legacy applications, built over decades and not designed to work together. Work transferred to Accenture will be handled mostly by teams in India, with some in Australia, and may later be changed further through automation and AI. Chief Executive Vanessa Hudson said Qantas would seek to redeploy affected employees elsewhere in the group where possible.

The cuts come as Qantas faces rising fuel costs amid hostilities in the Middle East. The airline reported a 20% fall in annual net profit for the year through June. Its shares were up 4.4% by early afternoon in Sydney, giving it a market value of more than US$10 billion.

Accenture reported higher quarterly revenue last month and forecast a strong year ahead, citing client demand for large-scale reinvention, often driven by AI. Earlier Tuesday, Boeing’s commercial aircraft unit said it planned to reduce its workforce by around 5%, citing a revised business plan and efforts to stabilize its supply chain.