Exclusive: TCS says Bhopal office only shifted, not shut, jobs intact

Tata Consultancy Services (TCS) has denied reports that nearly 1,000 employees in Bhopal are at risk, telling People Matters that speculation around job losses is “entirely false.”

The clarification follows reports suggesting that India’s largest IT services company was shutting its Bhopal centre after 13 years of operations. Business portal Trak.in reported that close to 1,000 employees had been affected, with some receiving transfer notices and others left uncertain about their future. The report also said that Madhya Pradesh’s Finance Minister and Deputy Chief Minister Jagdish Devda had written to TCS Chief Executive Officer K. Krithivasan, urging him to reconsider the move.

In its statement shared exclusively with People Matters, TCS said: “We consistently evaluate our infrastructure presence across cities. As a part of that, we have shifted our office in Bhopal. We would like to clarify that none of our employees in Bhopal have been impacted and speculative reports citing job losses are entirely false. TCS remains committed to its growing presence in the state of Madhya Pradesh. We are in the process of expanding our world-class facility in Indore, which currently employs over 10,000 professionals.”

The remarks mark the first time the company has formally addressed concerns around the Bhopal office. Earlier reporting had suggested that Devda warned TCS of possible economic losses for the state, arguing that the closure could affect revenues, disrupt livelihoods and weaken Bhopal’s IT ecosystem. He pointed out that TCS continues to operate in other tier-2 cities such as Ahmedabad, Lucknow and Kochi, and called for Bhopal to receive similar treatment.

TCS’s clarification shifts the narrative from job insecurity to business realignment. The company has underlined that it is consolidating its presence in Madhya Pradesh by expanding its Indore facility, one of the largest in central India. That centre already houses over 10,000 professionals and is being positioned as the company’s anchor in the state.

The situation has highlighted the pressures faced by tier-2 cities in retaining major IT operations. Over the past decade, large firms such as TCS expanded into smaller centres to access diverse talent pools and cut costs. 

For employees in Bhopal, the company’s categorical denial of layoffs provides short-term relief. However, questions remain over how sustainable IT investments will be in smaller cities amid ongoing consolidation and automation. As India’s technology sector rebalances its geography, the outcome of these shifts will be critical for local economies seeking to attract and retain global employers.