Analysis · Ticker Views

‘AI isn’t delivering’: Qantas job offshoring criticised

Qantas offshores 850 jobs to India, sparking brand image concerns and questioning AI’s impact on productivity and customer experience

Qantas’s decision to move 850 jobs to India has drawn criticism, with concerns mounting over the potential damage to its brand reputation, customer experience and employee trust.

Darren Woolley from Trinity P3 argues the move conflicts with the airline’s efforts to position itself as a premium brand. He pointed to previous offshoring decisions that coincided with reputational damage, including a significant decline in Skytrax rankings.

The airline’s reliance on artificial intelligence to justify changes to its workforce has also come under scrutiny. Woolley questioned whether the technology is delivering the productivity gains businesses have been promised.

“AI has made this huge promise of making everyone more productive. But we’re yet to see it actually working in any meaningful way,” he said.

Qantas Headquarters, Mascot, Sydney.
Qantas Headquarters, Mascot, Sydney. Photo: MDRX / Wikimedia Commons, CC BY-SA 4.0

He was particularly concerned about the decision to offshore marketing roles, arguing that the function plays a central part in shaping and protecting a company’s identity.

“It worries me that marketing is being offshored because, you know, the brand is significantly contributed to by marketing,” he said.

Woolley also warned that reducing costs could come at the expense of service standards, an area where Qantas has faced criticism in the past. He argued that savings should not undermine the quality of the customer experience, particularly for an airline seeking to command a premium position in the market.

The decision could also set a precedent for other Australian businesses considering similar workforce changes.

Rather than shifting jobs overseas, Woolley called for greater investment in using AI and technology to improve productivity domestically.

For Qantas, the challenge will be balancing cost pressures and shareholder expectations without weakening the customer experience and brand reputation it is trying to build.

Up next

More from Ticker

Watch

More in Ticker Views

View all →