Innodata Lays Off Nearly 550 Employees In India: Report

US-based AI services company Innodata has announced layoffs of nearly 550 employees in India, representing about 5% of its global workforce. The termination email, reviewed by India Today, cites a "ramp-down of a business assignment" and the impact of a significant client pulling funding from a major project as the reason for the job cuts.

The company did not link the decision to individual performance. The affected employees were informed of the layoffs during a regular workday on Monday, October 26, followed by the removal of their access to company IDs and internal systems. Many had already logged in and marked attendance before the layoffs were reported. The employees received termination emails with information about their full and final settlement via demand draft, contingent upon the return of company assets.

Innodata, founded in 1988, offers data engineering and AI services, including data labeling, model training, evaluation, and safety testing. The company, which lists Google, Microsoft, and Amazon among its clients, had a workforce of 10,107 globally as of December 2025. This move is part of a broader trend of workforce adjustments in the tech sector, driven by AI-led automation.

Recently, Amazon announced the layoff of at least 100 employees in India, while Oracle was preparing to cut thousands of jobs globally, with India likely included in the affected markets.