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US data firm Innodata abruptly lays off 550 Indian employees

American data engineering company Innodata has terminated approximately 550 employees in India without advance notice, with staff reporting their laptops were remotely logged out and access credentials deactivated mid-shift. The mass layoff also extends to operations in the Philippines.

LSN India · 27 October 2026

US data firm Innodata abruptly lays off 550 Indian employees

Innodata, a US-based data and AI services company, has executed a sudden workforce reduction in India affecting around 550 employees, according to reports from affected staff members. Workers described the termination process as abrupt, with computer access being revoked before formal notification, leaving many employees unable to complete work or retrieve personal data from company devices.

Employees recounted being locked out of systems without prior warning, with laptops automatically logged out and corporate identification credentials deactivated while they were still at their desks. The lack of transition period or advance communication has raised concerns about the company's handling of the redundancy process.

The layoffs are not confined to India. Reports indicate Innodata has also conducted significant workforce reductions in the Philippines, suggesting a broader restructuring initiative across multiple markets. The timing underscores ongoing volatility in the technology and artificial intelligence sectors, where numerous global companies have announced workforce cuts in recent months.

Innodata specializes in data engineering and AI services, sectors that have experienced considerable fluctuations in hiring and employment levels as companies adjust to market conditions and shifting operational priorities. The company has not issued a public statement regarding the scale or rationale for the layoffs at the time of reporting.