Innodata Reported Cutting 550 Jobs in India as Shares Fall 28%
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Innodata Reported Cutting 550 Jobs in India as Shares Fall 28%
The company has not confirmed the headcount. Its own filings show two customers made up 71% of second-quarter revenue.
Innodata cut nearly 550 jobs in India on Monday, October 26, according to reports from India Today and News24, and its shares fell 28% the next day. The company has not confirmed the headcount.
The Indian coverage describes Innodata as a US AI company. As of Thursday, October 29, neither the TIKR report nor News24's account carries a company statement.
What employees reported
India Today first reported the story on Tuesday morning, according to TIKR. Staff lost access to systems partway through the workday. One Delhi employee told India Today: "Laptops were logged out, and official IDs deactivated."
News24 said termination emails went to personal inboxes later that day. A message it says India Today reviewed cited a "reduction in the business assignment for which the employee had been engaged". The reports say the decision was not tied to individual performance.
Job cuts were also reported in the Philippines. News24 said a WhatsApp group for affected colleagues had nearly 500 members by late evening, and said that membership does not prove everyone in it was laid off.
The customer figures that frame it
The reported reason is a ramp-down on one assignment, and neither report names the customer. Innodata's own filings show how concentrated its revenue is. In its second-quarter release on August 6, the company reported revenue of $92.1 million, up 58% from a year earlier.
Chief Executive Jack Abuhoff said in that release: "In Q2, our largest customer represented 37% of revenue, down from 56% in Q1". A Big Tech customer rose from 17% to 34% of revenue. TIKR cites the 10-Q for a combined 71% from the two largest customers, which matches 37% plus 34%.
| Customer | Q1 2026 share of revenue | Q2 2026 share of revenue |
|---|---|---|
| Largest customer | 56% | 37% |
| Big Tech customer | 17% | 34% |
- Largest customer37 %
- Big Tech customer34 %
Source: Innodata second-quarter 2026 results release, August 6, 2026, via Stock Titan, accessed 2026-10-29
The release does not name either customer. It also gives no headcount, so the filings cannot be used to check the 550 figure.
Guidance before the cuts
Abuhoff also said: "We are reiterating our full-year 2026 revenue growth guidance of 40% or more year-over-year." The same release named Rahul Singhal as incoming President and CEO. Singhal said he intended "to repay it with results".
TIKR put consensus revenue estimates at $360 million for 2026 and $460 million for 2027, against $252 million in 2025. It said the stock traded at about 40 times forward earnings at Monday's close and about 29 times after the drop.
What is still unknown
Three things are missing from every report. The customer behind the ramp-down is not named, the revenue attached to it is not given, and nobody says whether the cuts are temporary.
News24 also said that Microsoft started a voluntary exit programme in India, the US, the UK and Canada the same week, and said there is no evidence linking it to Innodata. Other India-linked AI services deals the site has tracked include Cognizant's reported stake talks with Sarvam, and Surge AI's Dayjob: Tax benchmark.
Innodata is due to report third-quarter results after the market close on Thursday, November 5, according to TIKR.
Sources
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