Qantas is cutting more staff from its engineering division, with about 400 jobs set to go.
As part of a restructure of its engineering operations flagged in May, the airline is cutting about 200 daily maintenance positions in Sydney due to what it describes as "overstaffing", as well as some employees at Qantas Defence Services who maintain the Air Force's C130 Hercules aircraft, the ABC reports.
Qantas also plans to axe about 250 contractors and "a small number" of employees working on a Boeing 747 project at Melbourne's Avalon airport that finishes later in November.
However, the airline will fill up to 120 new positions in Brisbane as maintenance is transferred from Melbourne's Tullamarine operation to the Queensland facility, which is receiving a $A30 million upgrade.
Qantas says the changes will result in a net reduction of about 150 employees and 250 contractors.
The head of the airline's domestic operations, Lyell Strambi, says a more modern fleet of aircraft requires less maintenance and Qantas needs to cut costs to stay internationally competitive.
Unions have expressed disappointment at the job losses and are warning staff cuts will risk Qantas's reputation as one of the world's safest airlines.