Qantas cuts 850 jobs, union says AI is a cover for offshoring

On November 12, 2026, Reuters reported that Qantas, Australia's national airline, had announced a partnership with the consulting firm Accenture to push forward an AI transformation, cutting 850 jobs and outsourcing some corporate functions overseas. The move drew criticism from unions, who argued that Qantas was using AI as a pretext to mask the real reason behind the layoffs. The outlet noted in its coverage that so-called AI washing refers to companies claiming job cuts stem from adopting AI, when the underlying motive may mainly be cost reduction, such as moving domestic roles offshore.

The report added that this year, technology companies WiseTech and Atlassian had both cut jobs citing AI, while Telstra had also reduced positions within an AI joint venture with Accenture and shifted part of its operations to India. Other Australian companies were likewise trimming local headcount while expanding operations in India, the Philippines, and Vietnam, without explicitly mentioning AI in their announcements. Australian Prime Minister Anthony Albanese, asked about the Qantas layoffs while presenting the government's response to a recent incident involving an OpenAI agent breaching a government website, said AI presents both enormous opportunities and a major economic challenge.

Unions argued that Australian workers were losing jobs not because AI had replaced human labor, but because companies were turning to lower-paid workers overseas, and Australian Council of Trade Unions Secretary Melissa Donnelly voiced unions' concerns over the trend. As of now, the matter remains at the stage of the company's announcement and public statements from involved parties, with no further negotiation or resolution reported.