"We are making these changes to maintain low prices," a spokeswoman said, citing rising costs and competition.
Officeworks to Move Hundreds of Jobs Offshore in Cost-Cutting Shift
The Australian office products retailer Officeworks has confirmed it will make roles at its Western Sydney customer service centre redundant, replacing them with a call service based in Manila, Philippines. The company also plans to relocate its technology support business, Geeks2U, along with other office roles from Sydney and Melbourne to Bengaluru, India.
A Strategic Pivot
A company spokeswoman attributed the decision to rising costs, increasing competition, and changing customer expectations, stating the move is necessary to maintain low prices. In addition to offshoring, Officeworks will increase its use of AI, automation, and data analytics.
A Skilled Worker Shortage in Australia?
University of Sydney professor Vikas Kumar noted a distinction in the offshoring trends. While moving lower-skilled jobs to Manila is largely cost-driven, the shift of higher-value roles—such as those in AI—reflects a critical lack of skilled workers in Australia.
Phased Implementation
The company has already begun hiring for approximately 50 roles in Bengaluru, with plans to move hundreds of jobs to India in three phases. However, the majority of jobs, particularly customer-facing roles in stores, will remain in Australia.
Government Reaction
A federal government spokesperson responded to the announcement, stating that the government prefers Australian companies to prioritize local jobs.
Wesfarmers' Expanding Global Footprint
Officeworks is owned by Wesfarmers, whose other subsidiaries, Kmart and Target, already employ 500 people in a global capability centre in Bengaluru.