Officeworks Offshoring Plan: A Short-Term Fix with Long-Term Consequences

Employees of Officeworks have voiced strong opposition to the company's plan to shift hundreds of white-collar jobs to India and the Philippines, calling it a move to cut labor costs at the expense of local customer service. The Australian office products retailer will replace its Sydney-based customer service centre staff with a call centre in the Philippines and plans to base hundreds of other staff in India in the coming months.

While the company claims it wants a "globally connected team" and to keep costs low for customers, disgruntled staff believe they are being replaced with cheaper labour. One current employee, who spoke anonymously, noted that staff with 20 years' tenure were dismissed in an online meeting with no send-off celebration. "I 100 per cent believe the move is about the lower cost of labour overseas compared with Australia," the employee said.

Internal communications to staff stated that new offices in Manila and Bengaluru would operate as "fully integrated extensions" of the Australian business, enabling access to global talent as the company increases reliance on AI. However, an Officeworks spokeswoman reiterated that the majority of roles, including in-store and fulfilment centre jobs, would remain in Australia, and the company is preparing to open new stores around the country.

Move to 'Global Capability Centres'

Many companies, including Australian firms, have begun opening hubs called "global capability centres" in Bengaluru, which has a concentration of workers skilled in AI and technology. Officeworks' global capability centre website is advertising about 50 jobs in technology and digital transformation, some requiring up to 15 years' experience.

Additionally, employees of Officeworks-owned brand Geeks2U have reported that local staff are going through a redundancy process while their jobs were advertised in Manila before staff consultation was complete. The ABC understands that Geeks2U office staff and over-the-phone technical support will be based in Manila, with Australian workers contracted for in-person visits.

'We Have AI Development Skills Here'

University of Sydney retail expert Lisa Asher criticized the decision, stating that Officeworks' parent company, Wesfarmers, is putting shareholders above Australian workers. "It is a short-term solution to a profitability issue that's going to have long-term implications on employment options for people in Australia," she said. "If people don't have jobs, they can't go shopping."

Despite Wesfarmers' strong financial position—with revenue up 3.6% to $23.5 billion in the half year to December 2025—Officeworks has been an underperformer. Managing director John Gualtieri announced earlier this year that the company needed a strategic shift to make it viable. Asher rejected suggestions that Australia lacks the talent for AI development, noting that enrolments in computer science and AI programs have increased significantly.

NSW Finance Minister Courtney Houssos expressed disappointment, stating, "It's always disappointing when companies make decisions to move jobs offshore. I think it's really up to Officeworks to explain that particular decision."