Wesfarmers

Financial Context

Illustrative wage differential: if the 1,300+ reported offshore roles were instead employed in Australia at average local rates, the additional cost could be in the order of ~$111M/yr (~4.4% of reported net profit). This is an estimate based on industry averages, not company-specific data.

Would this company be profitable without offshoring?

Every dollar paid offshore leaves the Australian economy, reducing local wages, tax receipts, and economic circulation. Why it matters

Financial data: FY2024. Estimate uses avg AU employment cost of $110,000+/yr (incl. super and on-costs) vs offshore $25,000/yr (salary + on-costs). Actual figures vary by role, seniority, and location.

In Plain English

• In 2026, Wesfarmers was reported to have 1,300+ offshore contractors and staff.
• This represents ~1.1% when compared to its current workforce of 118,000 (illustrative comparison only, not directly reported by the company).
• 🇮🇳 1,300+ staff reported in India in IT, Back Office, Engineering.
• Known outsourcing partners include Accenture, Tata Consultancy Services, EY.

Based on data from public sources at the dates reported. Figures may not reflect current headcount. See sources below for full attribution.

The Story

• June 2026Officeworks staff impacted by the offshoring plan told the ABC it is an attempt to cut labour costs at the expense of local customer service. Employees with 20 years' tenure were dismissed in an online meeting, with a farewell delivered via an emailed digital card; staff created a 'price dropped' protest poster in the style of the company's slogan. Internal communications described the new Manila and Bengaluru offices as 'fully integrated extensions' of the Australian business, enabling access to global talent as Officeworks increases its reliance on AI. The Officeworks-owned tech-support brand Geeks2U is in a redundancy process. Office staff and over-the-phone technical support will be based in Manila, with Australian workers only contracted for in-person visits; staff reported seeing their jobs advertised in Manila before consultation was complete. The 'global capability centre' was advertising ~50 technology and digital-transformation roles in Bengaluru, some requiring up to 15 years' experience. A company spokeswoman said the majority of roles, including in-store and fulfilment-centre jobs, would remain in Australia. MD John Gualtieri emailed all staff saying the company valued 'doing the right thing' and wanted to be transparent. University of Sydney retail expert Lisa Asher called it 'a short-term solution to a profitability issue that's going to have long-term implications on employment options for people in Australia' and rejected the claim Australia lacks AI talent: 'We certainly have those AI development skills here.' Wesfarmers' last report showed revenue up 3.6% to $23.5 billion in the half-year to December 2025, but Officeworks has been an underperformer. NSW Finance Minister Courtney Houssos: 'It's always disappointing when companies make decisions to move jobs offshore.' [ABC News]
• May 2026Officeworks (Wesfarmers) plans to offshore hundreds of Sydney and Melbourne jobs to India (Bengaluru) and the Philippines (Manila). Dozens of staff at Officeworks' Western Sydney customer service centre were made redundant this week; their work will be replaced by a call service in Manila. Geeks2U (Wesfarmers-owned tech support) plus other office roles in Sydney and Melbourne will move to Bengaluru in coming months. Officeworks India has already begun hiring for ~50 sales, technology and analyst roles in Bengaluru, with plans to shift hundreds of jobs in three phases. The change is being led by managing director John Gualtieri (former CEO of Wesfarmers' Kmart and Target). A spokesperson cited "rising costs, increasing competition, and rapidly changing customer expectations." Officeworks is also rolling out more AI, automation and data. A federal government spokesman: "Our government will always back Australian jobs and put the interests of Australian workers first." [ABC News]
• May 2026Wesfarmers' Kmart and Target subsidiaries already employ approximately 500 people in business and technology roles at their Global Capability Centre in Bengaluru, a separate operation from the Officeworks expansion. [ABC News]
• 2025KAS Services rebranded to Anko. The Bangalore centre had grown to over 350 team members providing services in IT, inventory, analytics, finance, and an "accelerator" innovation function. [Anko GCC]
• December 2020Bunnings Technologies India Private Limited was incorporated in Bengaluru (WeWork Salarpuria, Bannerghatta Road). Separate from the Kmart/Target Anko centre, the Bunnings dev centre primarily services the retailer. Wesfarmers cited Australia's "lumpy and volatile" tech labour supply. [iTnews]
• 2020Bunnings set up a dedicated technology development centre in Bangalore, separate from the Kmart operation. [iTnews]
• 2019KAS Services moved into a fully tech-enabled office in Embassy Manyata Tech Park, Bangalore, with capacity for 450 team members. [Anko GCC]
• 2017Kmart Group (Wesfarmers subsidiary) established KAS Services in Bangalore with one employee in a temporary office. [Anko GCC]

All facts sourced from public reporting. No editorial commentary. Click source links to verify.