US-based retail group Catalyst Brands plans to raise headcount at its Bengaluru global capability centre (GCC) to 1,000 by the end of the year, up from 650 at the start of 2026.

Catalyst Brands India managing director Nihar Nidhi told Reuters that the change reflects a greater portion of global work being transferred to India, rather than an increase in the company’s overall workforce.

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The centre is expanding its responsibilities across digital operations, creative services, and core business functions such as planning and allocation.

The site is also adding AI-led work, including automated product description generation.

According to the report, Nidhi said productivity improvements tied to AI are being used to move staff into higher-value roles instead of cutting jobs. He added that retail remains at an early stage in adopting AI.

Nidhi also commented that the scale and quality of AI use cases coming out of Bengaluru were strengthening confidence that the city would “lead the agenda” in future, backed by ongoing investment in talent and capabilities.

Customer support activities are also being brought together in Bengaluru, with work previously handled in South America being shifted to India.

Nidhi said this process is expected to be largely completed over the next two quarters.

Catalyst Brands was formed in January 2025 through the merger of department store chain JCPenney and SPARC Group. The deal combined six retail banners, namely Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, Nautica and JCPenney.

At launch, the company had revenues of more than $9bn, around 1,800 store locations, 60,000 employees and $1bn in liquidity.

In July 2025, private equity company Onyx Partners agreed to acquire 119 JCPenney retail sites from Copper Property CTL Pass Through Trust for around $947m, as part of the chain’s continuing efforts to recover from its 2020 bankruptcy.