US-based AI and data engineering company Innodata has reportedly laid off nearly 550 employees in India on October 26, 2026, with additional workforce reductions reported in the Philippines.…
US-based AI and data engineering company Innodata has reportedly laid off nearly 550 employees in India on October 26, 2026, with additional workforce reductions reported in the Philippines. As per reports, several affected employees lost access to their company laptops, official IDs and internal systems during the working day, before receiving termination emails at their personal email addresses. The reported communication cited a reduction in business assignments rather than individual performance as the reason for the terminations.
The development comes despite Innodata reporting 58% year-on-year revenue growth in its second quarter, raising serious concern about workforce stability in an industry heavily dependent on large technology clients and project-based contracts. Innodata has not publicly confirmed the reported number of layoffs or identified the assignments involved. Employees Report Sudden Lockouts October 26 reportedly began as a routine working day for employees at Innodata's India operations. Workers logged into their systems and marked their attendance before discussions about possible layoffs began circulating around lunchtime.
As per employee accounts reported publicly, several workers contacted their managers and HR teams for clarification, only to find their access to company systems being withdrawn. Some employees reportedly discovered that October 26 had already been recorded as their resignation date and last working day on the company's HR portal. Others claimed they could no longer access payroll records, payslips and employment documents. Formal termination notifications reportedly arrived later through employees' personal email accounts.
What the Termination Letter Says According to reports, a termination communication sent to an affected employee attributed the decision to a reduction in the business assignment for which the employee had been engaged. The letter reportedly stated that the decision was based on business and operational requirements, not the employee's individual performance. It also identified October 26 as the last working day. The communication outlined a full-and-final settlement process, with payment arrangements linked to the return of company-issued assets.
However, the reported letter did not identify the customer or project involved, the total number of employees affected or whether the reductions extended across multiple assignments. The reference to a project ramp-down suggests a change in operational requirements, but it does not establish that a particular customer cancelled a contract.
This is a source-linked briefing. Read the original report from Ciol .