Tata Consultancy Services (TCS), India’s largest IT services company, has recently signed a significant lease agreement for about 1.75 million square feet of office space at Sattva Knowledge Point in Bengaluru. The total rent commitment for this newly leased space is approximately Rs. 975 crore for five years, translating to a monthly rent of around Rs. 15.37 crore. The office occupies multiple floors across Tower A and Tower B in Yeshwanthpur, Bengaluru, with an escalatory clause of 14% rent increase every three years and an option for renewal. This deal is one of the largest commercial leases in Bengaluru in 2025, highlighting the city’s importance as a thriving IT hub.

At the same time, TCS has been in the news for reportedly cutting jobs amidst industry-wide challenges and transformation. There have been rumours on social media about up to 80,000 layoffs since the start of the year, but the company has officially stated that the figure stands closer to 12,000 employees, representing about 2% of its workforce. This reduction is part of a workforce optimisation strategy, primarily influenced by the growing adoption of AI and automation technologies which are reshaping the IT sector. While some insiders have expressed concerns about severance packages and the effects on employees, TCS urges its workforce to upskill, especially on generative AI, to stay valuable in the evolving industry.

The juxtaposition of TCS expanding its office space while simultaneously downsizing its employee numbers might seem contradictory at first glance. However, this is reflective of a broader trend where large IT companies are modernising their work environments and expanding physical footprints in key tech hubs even as they streamline headcount through automation and skill realignment. The leased office spaces in Bengaluru not only accommodate teams but also serve as innovation centres and collaborative workspaces to support the company’s transition towards more AI-driven and knowledge-intensive work. Thus, TCS’s move underscores the complex dynamics of growth and transformation in the IT sector, balancing infrastructure investments with workforce rationalisation amid changing technological demands.

In summary, TCS’s lease of a Rs. 975 crore Bengaluru office amid layoffs illustrates how technology firms are adjusting to new realities — expanding their physical presence while reshaping their workforce to stay competitive in an AI era. The company’s emphasis on upskilling and its subsequent property investments reinforce Bengaluru’s pivotal role as a top IT destination in India. This situation highlights the evolving nature of work and space in the tech industry, blending expansion and optimisation side by side.

With inputs from agencies

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