Innodata Lays Off Nearly 550 Employees In India: Report

US-based Innodata has become the latest company to lay off a big chunk of its staff in India. The AI services company reportedly axed nearly 550 jobs in the country, nearly 5% of its global workforce. 

According to a termination email reviewed by India Today, the company cited a “ramp-down of the (a) business assignment” as the reason for the layoffs. It also noted that the decision was not linked to individual performance. Simply put, a major client likely pulled the plug on a massive project and Innodata responded by slashing the costs associated with that project. 

The extent of the layoffs, the teams involved and the status of the affected client assignments remain unclear. Inc42 has reached out to the company seeking more clarity on this. The story will be updated on receiving a response.

As per the report, the impacted employees lost access to official IDs and internal systems in the middle of the workday on Monday (October 26), followed by termination emails sent to their personal email accounts.

Many employees had, as usual, reportedly logged in and marked their attendance before reports of layoffs started circulating around lunchtime. As workers sought clarity from their managers and HR teams, access to company systems was gradually withdrawn, the report said.

The email also noted the impacted employee’s full and final settlement had been prepared through a demand draft, which would be handed over once company-assigned assets are returned.

Separately, the AI services company has also reportedly laid off an undisclosed number of employees in the Philippines. 

Founded in 1988, US-based Innodata provides data engineering and AI services, including data labelling, model training, evaluation and safety testing. The company lists Google, Microsoft and Amazon among its clients. Innodata had 10,107 employees globally at the end of December 2025.

The development comes amid a broader wave of workforce adjustments across the tech sector as companies reassess their operations and staffing requirements due to AI-led automation.

Earlier this month, ecommerce giant Amazon reportedly laid off at least 100 employees in India as part of its latest global job cuts. Before that, it was also reported that Oracle was preparing to lay off thousands of employees globally, with India expected to be among the markets affected by the planned cuts.

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