Compiled from reports by People Matters, HR Katha and The Motley Fool. See the original articles linked below.
Innodata, a New Jersey-based data-engineering and AI-services company, is reported to have dismissed nearly 550 employees in India on 26 October 2026, with additional job losses in the Philippines. According to People Matters, the India figure comes from an employee source cited by India Today, and the company has not publicly confirmed how many people were affected or given details of the Philippines reductions.
How the dismissals unfolded
HR Katha reported that staff in India logged in and marked attendance as usual on Monday, and that reports of layoffs began circulating around midday. Access to company systems was then cut, and termination emails arrived at personal email addresses. People Matters wrote that workers lost access to laptops, official IDs and the HR and payroll application before they could download payslips and other documents.
The termination message, as described by People Matters, referred to a ramp-down of the business assignment and said the decision was not related to the individual's performance. HR Katha similarly reported that the emails pointed to reduced assignments and operational needs. It added that the letters said final settlements would be processed once company assets were returned.
HR Katha also reported that affected employees set up WhatsApp groups to learn who else had been let go, and that close to 500 people had joined by evening. Some, it said, could not complete exit formalities because their access to the HR portal had been withdrawn.
Philippines
HR Katha reported that the cuts in the Philippines affected raters, quality experts, team leads and managers, and that online posts tied them to falling service volumes on a large client project. People Matters said posts on Reddit from people claiming to be employees described layoffs on the same day, including on a project it named as MUPSL. It noted that these accounts do not establish the scale of the cuts or the reason for them.
Share price reaction
The Motley Fool reported that Innodata shares, listed on Nasdaq as INOD, dropped roughly 25% on 27 October after news of the layoffs. It read the company's phrase about a ramp-down of the business assignment as a sign that a major client had scaled back a big project. According to the Motley Fool, investors are concerned that fewer active projects could lower future revenue and profit, and the stock still trades at about 27 times forward earnings estimates, which the outlet described as a premium valuation even after the decline.
The Motley Fool said Innodata is due to report third-quarter results on 5 November, and that the earnings call should shed light on the revenue impact and on whether other client contracts are at risk.
Company background
HR Katha described Innodata as a company founded in 1988 that offers data labelling, model training, evaluation and safety testing services. It cited the firm's 2025 annual report as showing more than 10,000 employees worldwide.
At the time of the reports, none of the three outlets cited a public statement from Innodata confirming the total number of employees affected across India and the Philippines, the business assignments involved, or the full reasons for the decision.
Sources
- InnoData lays off nearly 550 employees in India, job cuts reported in the Philippines (People Matters, 2026-10-27)
- Innodata layoffs hit India and the Philippines (HR Katha, 2026-10-28)
- Why Innodata Stock Crashed Today (The Motley Fool, 2026-10-27)
This article was compiled with AI assistance from the reports listed above and reviewed by GMA before publishing.