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Qantas announces 850 layoffs, unions question whether it is using AI as a cover to cut local jobs
IT Home, November 12 news, according to a Reuters report today (the 12th), Australia's national airline Qantas announced that it will cooperate with consulting firm Accenture to advance its AI transformation, cut 850 positions, and outsource some corporate functions overseas. The move has prompted union questions, with unions arguing that Qantas is using AI as a cover to hide the real reason for the layoffs.
IT Home note: So-called "AI washing" is when companies claim that layoffs are due to the adoption of AI technology, when in fact the main reason may be to reduce costs, for example by moving local jobs overseas.
This year, tech companies WiseTech and Atlassian have both cited AI as a reason for layoffs. Telstra has also cut positions at an AI joint venture formed with Accenture and moved some operations to India.
Other Australian companies are likewise reducing local headcount while expanding operations in India, the Philippines and Vietnam, though they do not explicitly mention AI in their announcements.
Australian Prime Minister Anthony Albanese was asked about the Qantas layoffs while announcing the government's response to a recent incident in which an OpenAI agent breached a government website. He responded that AI brings both huge opportunities and is a major economic issue.
Unions believe that Australian workers are losing their jobs not because AI has replaced human labor, but because companies are shifting to lower-paid overseas workers.
Australian Council of Trade Unions secretary Melissa Donnelly said: "Unions are concerned that companies may simply be using AI as an excuse to cut Australian jobs without being held accountable for it. Whether it is Qantas or the major banks, decisions involving workers' jobs and lives should be open and transparent, and involve genuine consultation with employees."
The Australian Services Union, which represents affected Qantas employees, accused Qantas of using the banner of AI to cover up cuts to local Australian positions.
A Qantas spokesperson responded that the company will continue to consult with unions, with a focus on helping affected employees move to other roles and providing necessary support. However, Qantas did not respond to questions from outside about "AI washing."
Australia's central bank said this week that AI has not yet triggered mass unemployment, but that "early signs of adjustment" have appeared in the job market: hiring demand has weakened in occupations more exposed to AI, while jobs less affected have maintained stronger employment growth.
A spokesperson for the Australian government said in a statement that the government hopes workers will also benefit from new technologies, and that companies should invest resources to help employees upgrade their skills so that they can master and apply AI.
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