Qantas to axe 850 jobs

[offshore171]

finalisation, will there be a gradual brain drain in the meantime?

A real chance of a huge loss of institutional knowledge

 

[downgraded]

This will just be “brilliant” for Qantas customers- NOT.

Maybe these global companies perhaps have the experience required to use these global IT systems? Just maybe? Built for Australian conditions may not be so relevant to an airline...

 

[Saab34]

That’s quite a bit, likely 20-25% of total head office staff.

A friend of mine was telling me the story that his airline outsourced flight planning or something to South Africa. He needed a change or something, and they had it ready in a few mins. Really highlights how far you can push the outsourcing envelope.

You come back in 10 years I bet all these A321XLR international flights will be operated by Asian based cabin crew.

 

[lovestotravel]

I thought when Joyce left, things like this would never happen.....

Got to hit those KPI's to get those bonuses.

 

[levelnine]

There's a good article in the AFR about the strategy. It's a two step process whereby Qantas gets the immediate benefit of outsourced/lower cost jobs while Accenture works on a longer term project of replacing those jobs entirely with AI, and they'll share the profits of those cost savings.

What is pretty funny is that they chose Accenture, which, as other commenters have noted, has bungled pretty much every other project it has run.

 

[Quickstatus]

Eventually they will outsource the pilots and cabin crew

 

[Doddler]

What is pretty funny is that they chose Accenture, which, as other commenters have noted, has bungled pretty much every other project it has run.

Telstra have too. Multiple other failures and cost blowouts here and overseas. None of that seems to matter with the present-day "box-ticking" exercise that procurement seems largely to be.

 

[Seat0B]

View attachment 531502


FINAL FLIGHT: Hundreds of Qantas employees facing redundancy have been offered a farewell gift from the airline: a complimentary one-way flight to India to train their replacements

The airline says the initiative is part of its commitment to supporting Australian workers through the transition.

“We want to make sure our 850 staff members feel valued right up until the moment we don’t need them,” said a Qantas spokesperson.

Employees will travel economy, with checked baggage, meals and seat selection available for an additional fee.

Qantas says return flights will be available at standard commercial rates, subject to availability.

Qantas offers 850 Australian workers free one-way flights to India to train their replacements

FINAL FLIGHT: Hundreds of Qantas employees facing redundancy have been offered a farewell gift from the airline: a complimentary one-way flight to India to train their replacements The airline says the initiative is part of its commitment to supporting Australian workers through the transition...

doublebaytoday.com

That would be funny if it weren't so plausible.

 

[Saab34]

Eventually they will outsource the pilots and cabin crew

I think the subsidiary model is much the same. Network A320 pilots earn half what a Qantas A321 Pilot makes. I understand those Qantas A330 Freighter pilots also earn loose change compared to the mothership.

If they could outsource pilots you bet they would.

 

[jrfsp]

I think the subsidiary model is much the same. Network A320 pilots earn half what a Qantas A321 Pilot makes. I understand those Qantas A330 Freighter pilots also earn loose change compared to the mothership.

If they could outsource pilots you bet they would.

Indeed, look at the A220 replacing the 737s on the “ regional” MEL - BNE run

 

[Q Class Plebeian]

And the ATO

Well companies exist to make money and a profit.
Lets not fool ourselves, its not about the customer or that matter the shareholder.Its about the executives.There were three very dangerous isms to arise in the 20th century, communism , fascism and while not as violent or destructive as the other two it is more pernicious and widespread , managerialism.

 

[ANstar]

Eventually they will outsource the pilots and cabin crew

Jetstar already have outsourced almost half their cabin crew to companies in Thailand and Indonesia.

 

[Doctore1003]

There's a good article in the AFR about the strategy. It's a two step process whereby Qantas gets the immediate benefit of outsourced/lower cost jobs while Accenture works on a longer term project of replacing those jobs entirely with AI, and they'll share the profits of those cost savings.

What is pretty funny is that they chose Accenture, which, as other commenters have noted, has bungled pretty much every other project it has run.

The first thing I thought was "those Indian jobs will also be outsourced soon ... to AI!"

 

[Saab34]

Those Australian based call centres if there is any left would surely be on the chopping block at some point.

I guess the only people on a non outsourced payroll will be mainline pilots, management, engineers and some head office staff. I have actually seen some corporates outsource head office roles to consultants.

 

[anat0l]

Well companies exist to make money and a profit.
Lets not fool ourselves, its not about the customer or that matter the shareholder.Its about the executives.

I would have thought shareholders are the most dangerous and ravenous.

Shareholders only want profit. They certainly don't care about this outsourcing move, unless it is going to hit the share price in a permanently unfavourable way. Hell, shareholders will accept if a company killed people, so long as their profits stay intact and grow.

Profit by any means necessary: the war cry of the public shareholder.

 

[Wing Nut]

The more Qantas cost cuts the further down the global rankings they fall.

 

[Doctore1003]

I would have thought shareholders are the most dangerous and ravenous.

Shareholders only want profit. They certainly don't care about this outsourcing move, unless it is going to hit the share price in a permanently unfavourable way. Hell, shareholders will accept if a company killed people, so long as their profits stay intact and grow.

Profit by any means necessary: the war cry of the public shareholder.

 

[offshore171]

PM calls Qantas to quickly check his son's Chairman's Lounge access is not impacted by the cuts

PRIORITY BOARDING: The Prime Minister today made an urgent call to Qantas executive leadership to confirm that his son will retain full access to the airline’s exclusive Chairman’s Lounge. The call comes as the airline cuts 850 Australian jobs and shifts roles to India. “Don’t worry Albo, he and...

doublebaytoday.com

 

[offshore171]

Read more

 

[kookaburra75]

And the ATO

And AEC

In various companies I worked for accounts payable, IT support, marketing support, recruitment were all partially or fully either offshored (in-house) or outsourced (offshore) long before WFH became a thing.

It’s more that the types of jobs people can do effectively remotely can be done remotely - whether people are doing them sitting in an office everyday or from their home office.

I agree, that WFH isn't a factor. In 2010-2011 and 2013-2014 I worked for a large US IT company in Australia. The first time we had most of our back office roles in Australia and everything worked as it should. When I came back the second time the majority of the back office roles were in India, but the contracts were set up poorly and the level of service was abysmal, which spilled over onto our clients. For example, all invoices should have been sent to the Project Manager for signoff, but the finance teams started sending them direct, and they were wrong. One way to cheese off a client is to send a wrong invoice. Another twist, was the finance team would get a bonus of 20% of any expense claim they could knock back - so they were incentivised not to approved valid expense claims. I hope that the Qantas contracts and agreements are setup to maintain level of service - but I'm not hopeful. How long before that spills over to us poor customers?

As well as feeling sorry for the affected employees, I can foresee a period of chaotic change coming up, including for customers, if it's not done right. And Qantas doesn't have a good track record in this regard.

"It's all about the money, stupid".

I agree. The roles they are shedding are the one that will not be in plentiful supply in the marketplace. Plus the age of the people being let go is a major factor. If you're over 55 in the current workplace you're too old and have little chance of getting a job with a similar level and pay. Just look what happened to the baggage handlers who were illegally fired by Qantas under Alan Joyce's watch.