In a statement, Qantas said the partnership was aimed at modernising its back-end systems, processes and data as the airline steps up investments in technology and artificial intelligence (AI), alongside the largest fleet renewal programme in its history.

The partnership with Accenture builds on the airline's existing technology investments, which exceed $1 billion annually. These include the newly established Qantas Product Innovation Centre in Adelaide, which is expected to expand to more than 400 roles. Thousands of employees are also already using AI tools in their daily work, the airline said.

"The partnership will redesign and simplify how parts of the Group’s corporate functions operate. Some of the services they provide will move to Accenture, delivered mostly by its teams in India and some in Australia, and in time be transformed further with automation and AI," Qantas said in a statement.

Announcing the job cuts, the airline said: "Around 850 roles at the Qantas Group are expected to be affected over the coming years."

Qantas said it would consult affected employees and their unions before deciding on individual outcomes.

The first phase of the changes is expected to be implemented by mid-2027, the airline added.

Qantas Group CEO Vanessa Hudson acknowledged the impact of the decision on employees, saying: "We know this will be difficult news for some of our people and this decision is not a reflection of their contribution or commitment."

She added that the airline would focus on redeploying affected employees to other positions across the Group wherever possible, including newly created roles in Australia.

"We are focused on providing redeployment into other roles across the Group where possible, including new roles we’re creating in Australia, as well as on reskilling, retraining and ongoing support and care," Hudson said.