Officeworks has announced plans to offshore hundreds of jobs to facilities in India and the Philippines as it plans to increase the use of AI in the business.

Australia’s largest office supplies retailer has reportedly made dozens of roles at its Western Sydney customer service centre redundant.

After staff were informed their roles would be replaced by a Philippines-based call service, an Officeworks spokesperson told Information Age that work currently handled by the company's customer service centre is "transitioning to an experienced provider in Manila, while maintaining an ongoing Australian presence".

The spokesperson also confirmed some activities performed in its Australian support office would transition to a new global centre in Bengaluru, India.

Information Age understands this will impact office-based roles in Sydney and Melbourne over the coming months.

“These changes affect a portion of our support office workforce,” the spokesperson said.

“The majority of our team, including everyone in our store network, will continue to be based in Australia, and we remain committed to investing in our local operations.”

“This is difficult for affected team members, who will be supported with redundancy entitlements alongside redeployment opportunities and outplacement support where possible.”

Officeworks India has started hiring for roughly 50 sales, technology and analyst roles based in Bengaluru, according to the ABC, with the company intending to shift hundreds of roles to India across three phases.

Officeworks employs more than 9,000 people in Australia.

The company said it would increase its use of AI, automation and data to improve efficiency and decision-making.

Earlier this year, Wesfarmers — which owns Officeworks, Kmart and Bunnings — announced partnerships with Microsoft and Google to accelerate the adoption of AI across its businesses.

When Information Age asked whether Officeworks intended to replace any workforce functions with artificial intelligence, a company spokesperson responded with an existing statement that did not address the question directly.

ABC says Geeks2U moving to India

According to the ABC – which reportedly saw Officeworks’ plan to shift more jobs overseas – on-site tech support provider Geeks2U would also be moved to Bengaluru in coming months.

It was unclear whether these plans were limited to the company’s booking systems and phone support, or its broader on-site support services.

An Officeworks spokesperson, however, refuted there would be any impacts on Geeks2U’s domestic operations.

“There [are] no changes to our Geeks2U operations in Australia, which will continue to run as normal,” a spokesperson told Information Age.

Information Age understands the Officeworks-owned company employs upwards of 120 people and routinely engages independent contractors in Australia.

Staff lament Officeworks cost-cutting plans

Information Age was told some Officeworks staff were aware of ongoing layoffs which would continue until next year.

According to a source familiar with the matter, the offshoring initiative has not been “particularly well received” among the company’s employees.

“The new [chief executive] is reorienting the business back towards being a low-cost business as opposed to its previous, more premium strategy, hence the offshoring,” an anonymous source told Information Age.

An Officeworks spokesperson explained the company had initiated a “significant business transformation program” so it could “continue to offer customers low prices and invest in our range, stores and technology”.

Announced earlier this year with an emphasis on Officeworks’ activities, resource planning, and talent and management capability, Information Age was told the program also includes Officeworks’ offshoring efforts to Manila and Bengaluru.

“With rising costs, increasing competition and rapidly changing customer expectations, this transformation is critical to strengthening our growth, resilience and competitiveness in a fast-evolving retail landscape,” a spokesperson said.