Innodata Lays Off Nearly 550 Employees in India, Job Cuts Also Reported in Philippines

US-based artificial intelligence services company Innodata has reportedly laid off nearly 550 employees in India, with additional job cuts reported in the Philippines.

According to reports, the layoffs took place on October 26, when employees in India began losing access to company laptops, official accounts and internal systems during the workday. Termination emails were subsequently sent to employees’ personal email addresses.

Innodata has not publicly confirmed the number of employees affected in India or the Philippines.

The reported 550 India layoffs would represent approximately 5.4% of Innodata’s 10,107 employees as of December 31, 2025. That comparison is based on the company’s last publicly disclosed annual workforce figure and does not represent its current workforce size.

Employees Report Sudden System Lockouts

Employees cited by reports said the day initially began as normal, with workers logging in and recording attendance before starting their work. Reports of layoffs began circulating around lunchtime, after which employees started losing access to company systems.

Some employees reportedly found October 26 listed as their last working day in the company’s HR portal. As workers contacted managers and HR teams for clarification, access to company laptops, official IDs and internal systems was withdrawn.

A termination email said the employee’s position was being discontinued because of a ramp-down of the business assignment for which they had been engaged. The communication said the decision was based on business and operational requirements and was not related to the employee’s individual performance.

The same communication said the employee’s full and final settlement had been prepared through a demand draft, with the original to be handed over after the return of company-assigned assets.

The terms described in that communication cannot be assumed to have applied to every employee affected by the reported layoffs.

Job Cuts Also Reported in the Philippines

Layoffs were also reported among Innodata employees in the Philippines, including workers in roles such as raters, quality experts, team leads and operational managers. The number of employees affected in the country has not been disclosed.

Posts from individuals identifying themselves as Innodata employees suggested that some cuts could be connected to lower work volumes on a major client assignment. However, those accounts have not independently established the identity of the client, the size of the affected project or whether the same reason applied to all employees.

Innodata has not publicly confirmed the overall scale of the workforce reduction or provided a detailed explanation for the reported layoffs.

The company’s 2025 annual report does, however, show that its business includes a substantial project-based component. Innodata has said that customers in its Digital Data Solutions business can reduce, delay or cancel projects and that the company may need to lay off employees when business volumes fluctuate.

Market Reaction

The reports also triggered a sharp movement in Innodata’s stock. Shares of Nasdaq-listed Innodata fell 25.32% on October 27, closing at $44.74 compared with $59.91 in the previous session. The stock had fallen as much as 28% during the trading day, while trading volume increased sharply.

The market reaction came amid questions about the business assignment mentioned in the termination communication and whether a reduction in client work could affect Innodata’s financial outlook. However, the share-price movement alone does not establish the reason for the decline or confirm that the reported layoffs were linked to a specific customer.

Innodata’s 2025 annual report also disclosed that one customer in its Digital Data Solutions segment accounted for approximately 58% of total company revenue in 2025. The filing does not identify that customer, and there is currently no confirmed information connecting it to the reported layoffs.

About Innodata

Founded in 1988 and headquartered in Ridgefield Park, New Jersey, Innodata is a data engineering and AI systems services company. It supports the development, training, post-training, evaluation and deployment of artificial intelligence systems.

Its services include data curation and transformation, data annotation, AI model training and evaluation, AI safety and related technology services. The company works with technology companies, AI developers and enterprises building or adopting AI systems.

Innodata reported $251.7 million in revenue for 2025, up 48% from $170.5 million in 2024. Its Digital Data Solutions segment generated $220.9 million in 2025 revenue, compared with $141.1 million a year earlier.