Kmart axes technology staff in AI-focused restructure
The Wesfarmers-owned retailer cut technology and IT roles as it shifts toward AI-driven operations and outsourcing.
Kmart has cut technology and IT roles in a restructure announced around 23–24 September 2026. The Wesfarmers-owned retailer is changing operations to support greater use of artificial intelligence and keep prices low, according to news.com.au. Some affected work is being replaced by AI or outsourced.
The move is a concrete Australian retail example of AI-linked restructuring, but broader Treasury and DEWR reporting indicates that widespread AI-driven job losses remain limited so far. Role redesign has been more common than outright cuts, although exposed areas such as accounting have experienced slower growth.
### Employer takeaway For an Australian business planning a similar restructure, identify the work genuinely made unnecessary by the new technology before selecting roles for redundancy. Consult affected employees before decisions are final, assess reasonable redeployment into redesigned or other suitable roles, and ensure any termination rests on a genuine redundancy rather than simply relabelling a performance or cost decision.
- Kmart cut technology and IT staff in a restructure announced around 23–24 September 2026.
- The restructure supports AI-driven operations and the retailer’s effort to keep prices low.
- Some roles were replaced by AI or outsourced.
- Australian Treasury and DEWR reporting says role redesign remains more common than broad AI-driven job losses.
For employers: Map which duties genuinely disappear through AI, consult before deciding redundancies, and assess reasonable redeployment into redesigned or other suitable roles so the process supports a genuine redundancy.
Sources: Kmart axes tech staff in company restructure amid push into artificial intelligence · Australia’s AI job impact still hard to find, Treasury report finds
General information for employers, not legal advice. Reporting summarised from the linked sources; confirm details with the primary source.